As the name may imply, the Consumer Financial Protection Bureau (CFPB) is a government bureau that protects consumers. They make sure that credit card companies do not do change terms overnight, provide accountability, and also ensure that consumers are not on the hook for unauthorized charges. If you have a problem with your financial institution, you can file a complaint to the CFPB and they will contact the financial institution for you to make it right.
While these changes have been in talks for a long time, it seems that they are finally being enforced. The changes impact reloadable prepaid cards and digital wallets.
If you have either a reloadable card, or a digital wallet such as PayPal/Venmo, then you are getting even more protection. The CFPB will ensure these companies will protect consumers from fraud and unauthorized charges
Unfortunately, it is not looking like the protection extends over to gift cards that are not reloadable.
While I’m sure many of the mobile wallet companies were already providing some sort of protection to its consumers, it’s nice to have the law in the books. That way if there is every an issue, and the company doesn’t want to fix it, you’ll have some sort of leverage to ensure they do fix the errors. It’s a shame we aren’t getting protection on gift cards as sometimes funds are depleted before the user gets to use the card. However, it’s nice to see them on reloadable prepaid cards.
What do you think of these changes? Will this policy change change your spending pattern? Let us know below!