Republican legislators have moved to repeal a rule constraining prepaid–debit card companies before the rule can take effect, marking the latest effort in their recent campaign of widespread deregulation.
Seven GOP senators—led by David Perdue of Georgia—and four representatives—led by Tom Graves, also of Georgia—filed identical resolutions in the Senate and House of Representatives last week, invoking an obscure law called theCongressional Review Act to smother a proposed Consumer Financial Protection Bureau (CFPB) rule before it can be enacted.
The CFPB rule, scheduled to take effect in October, would provide safeguards for those who use prepaid cards, which are similar to debit cards but are preloaded with a designated amount of money by the cardholder. The rule would require providers to disclose hidden fees and protect against loss, theft, and unauthorized charges. The rule would also force prepaid-card companies to limit overdraft fees.