JPMorgan Chase & Co., the biggest U.S. bank by assets, adopted a new disclosure form for its prepaid card to provide greater clarity on fees.
The disclosure, based on a model released by Pew Charitable Trusts, gives customers a description of fees and when deposits are available in an easy-to-read format, the New York-based bank said today in a statement. Pew is a Washington-based non-profit research firm specializing in trends and public attitudes.
Government agencies including the Consumer Financial Protection Bureau are pushing financial firms to make their retail products easier to understand. The amount loaded onto prepaid cards by U.S. consumers more than doubled in 2012 to $64 billion from 2009, according to Pew’s website.
“This disclosure box should be required by the Consumer Financial Protection Bureau for all general purpose reloadable prepaid cards,” Susan Weinstock, director of Pew’s safe checking research, said on the trust’s website.
Samuel Gilford, spokesman for the Consumer Financial Protection Bureau, didn’t immediately respond to inquiries about the Pew standard. U.S. Senator Mark R. Warner, a Virginia Democrat on the Banking Committee, has introduced legislation requiring financial institutions to be more upfront with prepaid cards.