Stored-value cards, which let people buy things without cash, should be regulated as debit cards are, Margot Saunders, managing attorney for the National Consumer Law Center, told a Fed consumer advisory body Thursday.

The Fed "would be abdicating its responsibility" if it did not regulate the cards, said Ms. Saunders, a member of the Federal Reserve Board's Consumer Advisory Council.

But Charlotte Newton, vice president for consumer and government affairs at MasterCard International and a member of the council, said regulations are premature because technology and applications are still emerging.

Council members also discussed possible changes in the Community Reinvestment Act, including whether more credit should be given for loan originations than loan purchases.

- David Harrison

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