NAPERVILLE, Ill. Illinois Gov. Pat Quinn has signed into law legislation that establishes a basic set of disclosures that must be furnished on general use reloadable prepaid products.
The disclosures will be provided to consumers on a pre-purchase basis, as well as on the cards and with the cards.
The legislation had the backing of the Illinois CU League, which worked with the Consumer Protection Division of the Illinois Attorney General’s office and other parties, including community banks, on the legislation.
The bill provides guidance to reloadable pre-paid debit card issuers in Illinois until the Consumer Finance Protection Bureau (CFPB) promulgates regulatory guidance pursuant to the federal Electronic Fund Transfer Act.
The league said the “legislation is of paramount importance to ICUL and ICUL Service Corporation (LSC), its credit union service organization that offers prepaid products as part of its suite of services and programs that help more than one-third of the nation’s credit unions compete.”
