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Released: April 17, 2012
Despite ‘egregious’ fees, prepaid card sales soar
Source: Herb Weisbaum, MSNBCThere’s a big change taking place. Many young people and those who want to avoid, or don’t qualify for, traditional financial products are choosing to use prepaid debit cards. A new study from Javelin Strategy and Research finds that the use of prepaid cards rose by about 18 percent last year. About 13 percent of the households in this country had one of these cards in 2011. There’s no question a prepaid card can be a useful money management tool for some people. But most cards have all sorts of fees. “There are more fees than you will typically find on either a credit or debit card,” says Ruth Susswein, deputy director of national priorities at Consumer Action, an advocacy group based in San Francisco.
Read Full Article: Despite ‘egregious’ fees, prepaid card sales soar