Stender, Singleton, Wimberly, Caride & Benson Bill to Limit Fees on Prepaid Debit Accounts & Protect Consumers Released by Assembly Panel

(TRENTON) – Legislation sponsored by Assembly Democrats Linda Stender, Troy Singleton, Benjie Wimberly, Marlene Caride and Daniel R. Benson to limit fees that may be charged on prepaid debit accounts and improve transparency for consumers was released Monday by an Assembly panel.
The bill (A-2144) regulates prepaid debit accounts by limiting the fees that may be charged in connection with the accounts and requiring financial institutions holding prepaid debit accounts to disclose certain information to consumers.
“Consumer protection is always a good thing, especially when it comes to uncovering hidden fees that can drain a bank account,” said Stender (D-Union/Middlesex/Somerset). “These are common sense reforms that will in the end benefit consumers and protect their money.”
“We’re always striving to improve consumer protections, so this is a step in the right direction for those who rely on prepaid debit accounts,” said Singleton (D-Burlington). “This is the right thing, especially in this difficult economy when knowing where every dollar goes has never been more important.”
“Too many consumers have lost too many hours and too much money trying to work their way through the fees that come with their accounts,” said Wimberly (D-Passaic/Bergen). “It’s time we gave prepaid debit account consumers stronger protections to ensure they know exactly what’s happening with their money.”
“Prepaid debit cards can help consumer keep debt under control, but they can also come with a confusing array of fees, rules and regulations,” said Caride (D-Passaic/Bergen). “Let’s open this system to transparency and disclosure and allow consumers to clearly know which decisions are best for their accounts.”
“Consumer protection is always a top priority,” said Benson (D-Mercer/Middlesex). “Many consumer use prepaid debit accounts to avoid running up debt, yet then see their accounts riddled with fees, so limiting these fees and improving transparency is quite simply the right thing to do.”
The bill was released 5-2 by the Assembly Financial Institutions and Insurance Committee, with Democrats supporting and Republicans opposing.