3 On Your Side: Warnings About Using Prepaid Debit Cards


REPORT ON “EYEWITNESS NEWS” AT 6:00 O’CLOCK. MILLIONS OF PEOPLE WITHOUT BANK ACCOUNTS RELY ON PREPAID DEBIT CARD TO PAY THEIR BILLS. BUT AS THREE ON YOUR SIDE JIM DONOVAN EXPLAINS, THOSE CARD, DO NOT PROTECT YOU FROM FRAUD, LIKE REGULAR CREDIT, AND DEBIT CARD DO. REPORTER: LIVING WITHOUT A BANK ACCOUNT, ALVIN HAS HIS, PAYCHECK DIRECTLY DEPOSITED ON TO A PREPAID DEBIT CARD BUT WHEN HE WENT TO ACCESS HIS MONEY. I SAW SOME OUT. REPORTER: SOMEONE DRAINED HIS CARD LEAVING HIM WITH NO WAY TO PAY RENT. I AM GOING TO GET KICKED OUT, FIND A NEW PLACE TO LIVE. REPORTER: HE CALLED CARD COMPANY AND HE SAID THEY TOLD HIM THERE WASN’T MUCH THEY COULD DO. I HAD NO IDEA WHAT TO DO. I HAVE NEVER BEEN IN A SITUATION LIKE THIS. REPORTER: CREDIT, DEBIT CARD OFFER PROTECTION FROM FRAUD, PREPAID DEBIT CARD USED BY 23 MILLION AMERICANS, DON’T HAVE THOSE SAME PROTECTIONS. BUT THAT IS SET TO CHANGE NEXT YEAR. NOW, A NEW RULE FROM THE CONSUMER FINANCIAL PROTECTION BUREAU WILL MAKE SURE PREPAID CARD ARE SAFE TO USE LIKE DEB IT CARD. REPORTER: RULES WOULD FORCE FINANCIAL INSTITUTION TOSS INVESTIGATE FRAUDULENT CLAIMS, TIED TO PREPAID CARD AND MONEY WILL GENERALLY BE PROTECT IF THE CARD IS WHO, STOLEN, OR WRONGLY CHARGED. THEY EXTEND A LOT OF THE SAME COVERAGE THAT YOU SEE WITH CREDIT CARD, OR WITH DEBIT CARD. REPORTER: EVEN THOUGH RULES DON’T TAKE EFFECT UNTIL APRIL OF 2018, ALVIN’S CARD COMPANY DID RETURN HIS MONEY EVENTUALLY. NEW RULES WERE ORIGINALLY SUPPOSED TO TAKE EFFECT IN OCTOBER BUT THAT WAS PUSHED BACK, SIX MONTHS TO GIVE THE

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