Thaddeus King

The service can be useful for customers short on cash, but financial institutions need to clarify overdraft rules and develop alternative forms of credit.

The service can be useful for customers short on cash, but financial institutions need to clarify overdraft rules and develop alternative forms of credit.

Approximately 37 million adults in the United States — a number roughly equivalent to the population of California — do not have a checking account. Some of those individuals have never relied on traditional banking.

As the Consumer Financial Protection Bureau prepares to finalize its rule on prepaid cards, the agency must clarify that automated overdraft products – a common reason consumers dump their banks – are not allowed on prepaid accounts.