California Tightens Limits on Prepaid Cards for Child Support

The state of California will no longer be able to deposit child support payments onto prepaid accounts that lack certain consumer protections, under a law signed Wednesday by Gov. Jerry Brown.

The new restrictions will apply to prepaid cards that lack deposit insurance, fail to comply with electronic security standards or charge overdraft fees. Similar requirements currently apply to payments distributed by federal agencies.

The law will take effect on Jan. 1.

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