Consumers
for Paper Options, a coalition of individuals and organizations advocating for
access to paper-based services and information, today applauded a group of U.S.
senators for taking action against payroll card fees. Sixteen senators sent a
letter calling on the Consumer Financial Protection Bureau and Department of
Labor to study prepaid "payroll cards," which some employers use in
lieu of checks or direct deposits.
The
senators are concerned not only about the fees that prepaid cards incur for
employees, but are also concerned that employees are being pressured to accept
payment in this format because it is cheaper for companies. Meanwhile,
employees receiving wages on prepaid cards often face charges for ATM use,
purchases, overdrafts, card replacement and even inactivity.
