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Showing blog posts tagged with prepaid cards

CFPB Warns Employers About Payroll Card Abuse

Mike Hall | Corporate Greed

Photo by DJJudah/Flickr

Earlier this summer,  we reported on a new trend —especially prevalent in low-wage industries—where more and more workers aren’t getting paper paychecks or direct deposits to their checking accounts, but instead are finding their wages on prepaid cards. The Consumer Financial Protection Bureau ( CFPB )  warned employers  yesterday about the misuse of prepaid payroll cards and that they cannot require workers receive their wages via prepaid cards.   

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Prepaid Cards: High Fees for Low Wages

Mike Hall | Corporate Greed

Photo by DJJudah/Flickr

When payday rolls around, more and more workers aren’t getting paper paychecks or direct deposits to their checking accounts, but instead are finding their wages on prepaid cards.

The new trend—especially  prevalent in low-wage industries—saves the employer money,  and means big (and mostly unregulated) profits for the banks and financial institutions that issue the cards. It also eats big chunks of the workers’ pay though a bevy of fees they must pay to access their accounts.

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 Accumulator Elapsed Percent Count Average
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