Florida AG Announces Settlement With Prepaid Debit Card Companies

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On January 16, Florida Attorney General Pam Bondi announced that she obtained “first of their kind” settlements from the state’s five largest prepaid debit card companies. The settlements resolve claims that the companies failed to properly disclose information about fees and misled consumers with claims that use of the cards would improve credit history. While the agreements are not identical, they each require enhanced compliance measures, which generally relate to fee disclosures, use of comparison charts, and use of claims about credit improvements. Each company also agreed to make a donation to the Central Florida Chapter of Junior Achievement and pay the cost and fees for the matters investigated to the Office of the Attorney General.

Topics:  Debit Cards, Disclosure Requirements, Misrepresentation, Prepaid Payment Products, Settlement

Published In: General Business Updates, Consumer Protection Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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