Prepaid Card Disclosure Act of 2014

 

GRA14015

S.L.C.

113TH CONGRESS 2D SESSION 

 ll

S.

To provide greater fee disclosures for consumers who have prepaid cards, and for other purposes.

IN THE SENATE OF THE UNITED STATES

 llllllllll Mr. W  ARNER introduced the following bill; which was read twice and referred to the Committee on  llllllllll

A BILL To provide greater fee disclosures for consumers who have prepaid cards, and for other purposes. 1

 Be it enacted by the Senate and House of Representa-

2

tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 4 5

This Act may be cited as the ‘‘Prepaid Card Disclosure Act of 2014’’.

6 SEC. 2. SPENDING ACCOUNTS. 7 8

CCOUNTS.—The Electronic Fund (a) SPENDING  A CCOUNTS

Transfer Act (15 U.S.C. 1693 et seq.) is amended—

9

(1) by redesignating section 923 (15 U.S.C.

10

1693 note), relating to the effective date of the Elec-

 

GRA14015

S.L.C.

2 1

tronic Fund Transfer Act, as so designated by sec-

2

tion 1073 of the Dodd-Frank Wall Street Reform

3

and Consumer Protection Act (Public Law 111–203;

4

124 Stat. 2060), as section 925;

5

(2) by redesignating section 922 (15 U.S.C.

6

1693r), relating to exemptions for State regulation,

7

as so designated by section 1073 of the Dodd-Frank

8

 Wall Street Reform and Consumer Protection Act

9

(Public Law 111–203; 124 Stat. 2060), as section

10 11 12

923; and (3) by inserting after section 923, as so redesignated, the following:

13 ‘‘SEC. 924. SPENDING ACCOUNTS; DISCLOSURE OF FEE IN14 15 16

FORMATION.

‘‘(a) DEFINITION.—For purposes of this section, the term ‘spending account’—

17

‘‘(1) means a transaction account, other than

18 19

as defined in section 903(2)— ‘‘(A) that is established by a consumer or

20

on behalf of a consumer at an insured deposi-

21

tory institution (as defined in section 3(c) of

22

the Federal Deposit Insurance Act (12 U.S.C.

23

1813(c));

24 25

‘‘(B) that contains the funds of a consumer;

 

GRA14015

S.L.C.

3 1

‘‘(C) to which payments are to be made by

2

a consumer, or at the direction of a consumer;

3

‘‘(D) to which recurring electronic fund

4

transfers may be made, at the direction of a

5

consumer; or

6

‘‘(E) from which payments may be made

7

at the direction of a consumer through the use

8

of a card, code, or device;

9

‘‘(2) includes a transaction account described in

10 11 12 13

paragraph (1)— ‘‘(A) that is operated or managed by a financial institution, or any other person; and ‘‘(B) the funds of which are—

14

‘‘(i) pooled with the funds of a person

15

other than the person who established the

16

account; or

17

‘‘(ii) held in a name other than that

18

of the person who established the account; and

19 20

‘‘(3) does not include—

21

‘‘(A) a nonreloadable general-use prepaid

22

card, as defined in section 915(a)(2)(A), in an

23

amount that does not exceed $250;

 

GRA14015

S.L.C.

4 1

‘‘(B) a general-use prepaid card, as defined

2

in section 915(a)(2)(A), that is solely associated

3

 with—

4

‘‘(i) a health plan to which section

5

105 of the Internal Revenue Code of 1986

6

applies;

7

‘‘(ii) a qualified transportation fringe,

8

as defined in section 132(f) of the Internal

9

Revenue Code of 1986;

10

‘‘(iii) a health savings account, as de-

11

fined in section 223(d) of the Internal Rev-

12

enue Code of 1986; or

13

‘‘(iv) any other healthcare benefit ac-

14

count, including a healthcare account relat-

15

ing to Medicare or Medicaid benefits;

16

‘‘(C) a gift certificate, as defined in section

17

915(a)(2)(B);

18 19

‘‘(D) a store gift card, as defined in section 915(a)(2)(C);

20

‘‘(E) an electronic promise, plastic card, or

21

payment code or device described in clause (i),

22

(v), or (vi) of section 915(a)(2)(D);

23 24

‘‘(F) a nonreloadable card labeled as a gift card and marketed solely as a gift card;

 

GRA14015

S.L.C.

5 1 2

‘‘(G) a nonreloadable loyalty, rebate, or promotional card; or

3

‘‘(H) a debit card or general-use prepaid

4

card that has been provided to a person pursu-

5

ant to a Federal, State or local government ad-

6

ministered payment program, in which the per-

7

son may only use the debit card or general-use

8

prepaid card to transfer or debit funds, mone-

9

tary value, or other assets that have been pro-

10 11 12

 vided pursuant to such program. ‘‘(b) DISCLOSURE OF FEE INFORMATION.— ISCLOSURE URE ‘‘(1) DISCLOS

REQUIR REQUIRED ED.—Each

financial

13

institution or entity that is operated, managed, or

14

controlled by a financial institution, or any other

15

person that offers a spending account shall provide

16

to a consumer—

17

‘‘(A) together with any application, offer,

18

or solicitation for a spending account a table of any fees that may be charged in connection

19 20

 with the spending account that— ‘‘(i) can be easily understood by the

21 22

consumer;

23

‘‘(ii) is clearly and conspicuously dis-

24

played to the consumer before purchase;

25

and

 

GRA14015

S.L.C.

6 1

‘‘(iii) includes, at a minimum, the

2

amount and a description of each fee that

3

may be charged in connection with the

4

spending account by the financial institu-

5

tion or entity that is operated, managed, or

6

controlled by a financial institution, or any

7

other person; and

8

‘‘(B) on the card or other means of access,

9

a toll-free telephone number and website at

10

 which the consumer may access a clear and

11

conspicuous disclosure of the fees that may be

12

charged in connection with the spending ac-

13

count.

14

‘‘(2) QR

CODE.—The

Bureau may, in accord-

15

ance with any rules established under paragraph (3)

16

and in addition to the disclosure requirements under

17

paragraph (1), require the placement of a QR code,

18 19

 barcode, or other similar technology on any packaging, card, or other object associated with a spend-

20

ing account, provided that such QR code, barcode,

21

or other technology is capable of providing an elec-

22

tronic link to the disclosures required under para-

23

graph (1) to a consumer.

24

‘‘(3) RULES.—Not later than 9 months after

25

the date of enactment of the Prepaid Card Disclo-

 

GRA14015

S.L.C.

7 1

sure Act of 2014, the Bureau shall establish, by

2

rule, the headings, content, and format of the fee

3

table and estimate required under paragraph (1).’’.

4

ECHNICAL CAL (b) TECHNI

AND

MENDMENTS.— CONFORMING  A MENDMENTS

5

Section 903 of the Electronic Fund Transfer Act (15

6

U.S.C. 1693a) is amended—

7

(1) by redesignating paragraph (4) (relating to

8

the Board of Governors of the Federal Reserve Sys-

9

tem), as so designated by section 1084(2)(A) of the

10

Dodd-Frank Wall Street Reform and Consumer Pro-

11

tection Act (Public Law 111–203; 124 Stat. 2081),

12

as paragraph (3); and

13

(2) in paragraph (3), as so redesignated, by

14

striking ‘‘term ‘Bureau’ means the Bureau of Gov-

15

ernors’’ and inserting ‘‘term ‘Board’ means the

16

Board of Governors’’.

17

RESERVATIO RVATION N (c) PRESE

OF  A UTHORITY  UTHORITY .—Nothing .—Nothing

in this

19

 Act shall be construed to limit, amend, or otherwise alter the authority of the Bureau of Consumer Financial Pro-

20

tection to issue and adopt rules, take any action, or exer-

21

cise any other power under the Electronic Fund Transfer

22

 Act, including with respect to general-use prepaid cards

23

or any other electronic fund transfer product not subject

24

to the provisions of this Act.

18

 

GRA14015

S.L.C.

8 1

(d) RULE

OF

CONSTRUCTION REL ELAT ATIN ING G

TO

EBT

2

C ARDS.—Nothing in this Act shall be construed to affect

3

the regulation of electronic benefit transfers by the Bu-

4

reau of Consumer Financial Protection.