Op-Ed
93 Million Prepaid Cardholders are Unprotected
By Charlene Crowell
NNPA Columnist
When it comes to financial services, many consumers are surprised by the range of fees attached to their transactions. From mortgages to checking accounts, credit cards and more, regulations for these products establish the ‘rules of the road’ for consumers and creditors alike.
Yet, one financial product with growing popularity has no comparable consumer protection: prepaid cards. For example, if a consumer has an account with a bank or credit union, their money is federally-insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. Even when employers use prepaid cards for payrolls or when government benefits are issued on these cards, consumer protections are lacking.
Moreover, when fees are attached to worker wages and public benefits payments, consumers are shortchanged with no legal redress.
With each card issuer also setting its fee schedule and assessments, multiple added costs for usage can widely vary. Fees can include some or all of the following typical transactions: ATM cash withdrawal, balance inquiry, bill payments, card cancellation, inactivity, monthly usage, replacement of lost or stolen cards, and overdraft fees.
According to FDIC, among the largest users of prepaid cards are 25 million unbanked consumers and an additional 68 million who are underbanked, preferring these cards or other alternative financial services to traditional institutions.
The term ‘unbanked’ refers to those who have no existing relationship with a traditional financial institution such as a bank or credit union. ‘Underbanked’ consumers have such a relationship but turn to a range of alternative financial services for most of their personal financial transactions. Unbanked and underbanked consumers are also disproportionately consumers of color – Black, Latino, and Native American.
The combination of growing prepaid usage and lack of financial regulation has caught the attention of the Consumer Financial Protection Bureau (CFPB). In remarks at a field hearing last November, Richard Cordray, CFPB Director, stated the agency’s concerns.
“Many of these prepaid [card] consumers are living paycheck to paycheck, and are engaged in a constant battle to make ends meet,” said Cordray. “They are some of the most economically vulnerable among us, and most of them have no idea that the prepaid cards they choose to purchase are largely unregulated at the federal level and carry few if any protections under federal consumer financial law.”
To remedy this regulatory gap, CFPB has proposed rules for prepaid cards that would increase the consistency and clarity around the product, as the Bureau has for other financial products and services. Key requirements that CFPB is proposing include:
• Public disclosure in a uniform format of applicable fees;
• Better access to balances, customer service account transactions and other information;
• Require basic protections from fraud for both prepaid cards and mobile versions; and
• Establish limits on overdraft fees on all prepaid cards.
Consumer advocates are paying particular attention to the Bureau’s handling of overdraft fees on prepaid cards. Expensive overdraft fees are a major reason why many individuals have lost or left their traditional checking account.
“Prepaid card issuers should not be permitted to burden card holders with overdraft charges, particularly when these cards are invariably marketed as a way to give customers better control of their finances and prevent overspending,” said Rebecca Borne, a senior policy counsel with the Center for Responsible Lending.
Prepaid cards have also attracted the enactment of related state laws in Illinois and California.
In Illinois, lawmakers heeded the joint urgings of its Attorney General Lisa Madigan and Department of Labor to pass a bill that protects workers who receive their paychecks by prepaid cards. The action was taken following an investigation that found how multiple fees attached to payroll cards were shortchanging workers’ wages.
“People shouldn’t have to pay for their pay,” Madigan said. “This bill will ensure that low wage workers get all of their wages instead of having them siphoned off by banks through unfair and excessive fees.”
In California, a similar bill jointly sponsored by the California Reinvestment Coalition and the Western Center on Law and Poverty, was enacted to protect and empower low-income consumers who receive their benefits through the Electronic Benefit Transfer (EBT) system. Consumer advocates in the state previously determined that banks and other ATM owners charged a $4 fee for every time a recipient used their card.
If you or someone you know uses prepaid cards, be sure that you fully understand its terms.
Charlene Crowell is a communications manager with the Center for Responsible Lending. She can be reached at Charlene.crowell@responsiblelending.org.
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Activism
OP-ED: AB 1349 Puts Corporate Power Over Community
Since Ticketmaster and Live Nation merged in 2010, ticket prices have jumped more than 150 percent. Activities that once fit a family’s budget now take significant disposable income that most working families simply don’t have. The problem is compounded by a system that has tilted access toward the wealthy and white-collar workers. If you have a fancy credit card, you get “presale access,” and if you work in an office instead of a warehouse, you might be able to wait in an online queue to buy a ticket. Access now means privilege.
By Bishop Joseph Simmons, Senior Pastor, Greater St. Paul Baptist Church, Oakland
As a pastor, I believe in the power that a sense of community can have on improving people’s lives. Live events are one of the few places where people from different backgrounds and ages can share the same space and experience – where construction workers sit next to lawyers at a concert, and teenagers enjoy a basketball game with their grandparents. Yet, over the past decade, I’ve witnessed these experiences – the concerts, games, and cultural events where we gather – become increasingly unaffordable, and it is a shame.
These moments of connection matter as they form part of the fabric that holds communities together. But that fabric is fraying because of Ticketmaster/Live Nation’s unchecked control over access to live events. Unfortunately, AB 1349 would only further entrench their corporate power over our spaces.
Since Ticketmaster and Live Nation merged in 2010, ticket prices have jumped more than 150 percent. Activities that once fit a family’s budget now take significant disposable income that most working families simply don’t have. The problem is compounded by a system that has tilted access toward the wealthy and white-collar workers. If you have a fancy credit card, you get “presale access,” and if you work in an office instead of a warehouse, you might be able to wait in an online queue to buy a ticket. Access now means privilege.
Power over live events is concentrated in a single corporate entity, and this regime operates without transparency or accountability – much like a dictator. Ticketmaster controls 80 percent of first-sale tickets and nearly a third of resale tickets, but they still want more. More power, more control for Ticketmaster means higher prices and less access for consumers. It’s the agenda they are pushing nationally, with the help of former Trump political operatives, who are quietly trying to undo the antitrust lawsuit launched against Ticketmaster/Live Nation under President Biden’s DOJ.
That’s why I’m deeply concerned about AB 1349 in its current form. Rather than reining in Ticketmaster’s power, the bill risks strengthening it, aligning with Trump. AB 1349 gives Ticketmaster the ability to control a consumer’s ticket forever by granting Ticketmaster’s regime new powers in state law to prevent consumers from reselling or giving away their tickets. It also creates new pathways for Ticketmaster to discriminate and retaliate against consumers who choose to shop around for the best service and fees on resale platforms that aren’t yet controlled by Ticketmaster. These provisions are anti-consumer and anti-democratic.
California has an opportunity to stand with consumers, to demand transparency, and to restore genuine competition in this industry. But that requires legislation developed with input from the community and faith leaders, not proposals backed by the very company causing the harm.
Will our laws reflect fairness, inclusion, and accountability? Or will we let corporate interests tighten their grip on spaces that should belong to everyone? I, for one, support the former and encourage the California Legislature to reject AB 1349 outright or amend it to remove any provisions that expand Ticketmaster’s control. I also urge community members to contact their representatives and advocate for accessible, inclusive live events for all Californians. Let’s work together to ensure these gathering spaces remain open and welcoming to everyone, regardless of income or background.
Advice
COMMENTARY: If You Don’t Want Your ‘Black Card’ Revoked, Watch What You Bring to Holiday Dinners
From Thanksgiving to Christmas to New Year’s Day, whether it’s the dining room table or the bid whist (Spades? Uno, anyone?) table, your card may be in danger.
By Wanda Ravernell
Post Staff
From the fourth week of November to the first week in January, if you are of African descent, but particularly African American, certain violations of cultural etiquette will get your ‘Black card’ revoked.
From Thanksgiving to Christmas to New Year’s Day, whether it’s the dining room table or the bid whist (Spades? Uno, anyone?) table, your card may be in danger.
It could take until Super Bowl Sunday for reinstatement.
I don’t know much about the card table, but for years I was on probation by the ‘Aunties,’ the givers and takers of Black cards.
How I Got into Trouble
It was 1970-something and I was influenced by the health food movement that emerged from the hippie era. A vegetarian (which was then considered sacrilegious by most Black people I knew) prepared me a simple meal: grated cheese over steamed broccoli, lentils, and brown rice.
I introduced the broccoli dish at the Friday night supper with my aunt and grandfather. She pronounced the bright green broccoli undone, but she ate it. (I did not, of course, try brown rice on them.)
I knew that I would be allowed back in the kitchen when she attempted the dish, but the broccoli had been cooked to death. (Y’all remember when ALL vegetables, not just greens, were cooked to mush?)
My Black card, which had been revoked was then reattained because they ate what I prepared and imitated it.
Over the decades, various transgressions have become normalized. I remember when having a smoked turkey neck instead of a ham hock in collard greens was greeted with mumblings and murmurings at both the dining room and card tables. Then came vegan versions with just olive oil (What? No Crisco? No bacon, at least?) and garlic. And now my husband stir fries his collards in a wok.
But No Matter How Things Have Changed…
At holiday meals, there are assigned tasks. Uncle Jack chopped raw onions when needed. Uncle Buddy made the fruit salad for Easter. My mother brought the greens in winter, macaroni salad in summer. Aunt Deanie did the macaroni and cheese, and the great aunts, my deceased grandmother’s sisters, oversaw the preparation of the roast beef, turkey, and ham. My father, if he were present, did the carving.
These designations/assignments were binding agreements that could stand up in a court of law. Do not violate the law of assignments by bringing some other version of a tried-and-true dish, even if you call it a new ‘cheese and noodle item’ to ‘try out.’ The auntie lawgivers know what you are trying to do. It’s called a menu coup d’état, and they are not having it.
The time for experiments is in your own home: your spouse and kids are the Guinea pigs.
My mother’s variation of a classic that I detested from that Sunday to the present was adding crushed pineapple to mashed sweet potatoes. A relative stops by, tries it, and then it can be introduced as an add-on to the standard holiday menu.
My Aunt Vivian’s concoctions from Good Housekeeping or Ladies’ Home Journal magazine also made it to the Black people’s tables all over the country in the form of a green bean casserole.
What Not to Do and How Did It Cross Your Mind?
People are, of all things holy, preparing mac ‘n’ cheese with so much sugar it tastes like custard with noodles in it.
Also showing up in the wrong places: raisins. Raisins have been reported in the stuffing (makes no sense unless it’s in a ‘sweet meats’ dish), in a pan of corn bread, and – heresy in the Black kitchen – the MAC ‘n’ CHEESE.
These are not mere allegations: There is photographic evidence of these Black card violations, but I don’t want to defame witnesses who remained present at the scene of the crimes.
The cook – bless his/her heart – was probably well-meaning, if ignorant. Maybe they got the idea from a social media influencer, much like Aunt Viv got recipes from magazines.
Thankfully, a long-winded blessing of the food at the table can give the wary attendee time to locate the oddity’s place on the table and plan accordingly.
But who knows? Innovation always prevails, for, as the old folks say, ‘waste makes want.’ What if the leftovers were cut up, dipped in breadcrumbs and deep fried? The next day, that dish might make it to the TV tray by the card table.
An older cousin – on her way to being an Auntie – in her bonnet, leggings, T-shirt, and bunny slippers and too tired to object, might try it and like it….
And if she ‘rubs your head’ after eating it, the new dish might be a winner and (Whew!) everybody, thanks God, keeps their Black cards.
Until the next time.
Alameda County
Seth Curry Makes Impressive Debut with the Golden State Warriors
Seth looked comfortable in his new uniform, seamlessly fitting into the Warriors’ offensive and defensive system. He finished the night with an impressive 14 points, becoming one of the team’s top scorers for the game. Seth’s points came in a variety of ways – floaters, spot-up three-pointers, mid-range jumpers, and a handful of aggressive drives that kept the Oklahoma City Thunder defense on its heels.
By Y’Anad Burrell
Tuesday night was anything but ordinary for fans in San Francisco as Seth Curry made his highly anticipated debut as a new member of the Golden State Warriors. Seth didn’t disappoint, delivering a performance that not only showcased his scoring ability but also demonstrated his added value to the team.
At 35, the 12-year NBA veteran on Monday signed a contract to play with the Warriors for the rest of the season.
Seth looked comfortable in his new uniform, seamlessly fitting into the Warriors’ offensive and defensive system. He finished the night with an impressive 14 points, becoming one of the team’s top scorers for the game. Seth’s points came in a variety of ways – floaters, spot-up three-pointers, mid-range jumpers, and a handful of aggressive drives that kept the Oklahoma City Thunder defense on its heels.
One of the most memorable moments of the evening came before Seth even scored his first points. As he checked into the game, the Chase Center erupted into applause, with fans rising to their feet to give the newest Warrior a standing ovation.
The crowd’s reaction was a testament not only to Seth’s reputation as a sharpshooter but also to the excitement he brings to the Warriors. It was clear that fans quickly embraced Seth as one of their own, eager to see what he could bring to the team’s championship aspirations.
Warriors’ superstar Steph Curry – Seth’s brother – did not play due to an injury. One could only imagine what it would be like if the Curry brothers were on the court together. Magic in the making.
Seth’s debut proved to be a turning point for the Warriors. Not only did he contribute on the scoreboard, but he also brought a sense of confidence and composure to the floor.
While their loss last night, OKC 124 – GSW 112, Seth’s impact was a game-changer and there’s more yet to come. Beyond statistics, it was clear that Seth’s presence elevated the team’s performance, giving the Warriors a new force as they look to make a deep playoff run.
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