Prepaid Fee Short Form Disclosure Template

Description

The Prepaid Consumer Short Form Fee Disclosure Template is a concise document designed to outline the fee structure of consumer prepaid card programs in compliance with guidelines set by the Consumer Financial Protection Bureau (CFPB). This template provides a standardized format for financial services companies to disclose the most critical fees associated with their prepaid cards in a clear, straightforward manner. The goal is to present this information on a single page for easy comprehension by consumers. Here’s a breakdown of the content and structure of the template:

• Instructional Section: Initially, the template includes instructions for completing the form, emphasizing the importance of accurately filling in all placeholders and removing all instructional text before finalization. This section is to be deleted in the final document.
• Fee Disclosure: The body of the template lists key fees associated with the prepaid card. Each fee category includes a placeholder for the amount to be inserted by the issuer. The categories covered are:
  • Periodic Fee: This could be a monthly or annual fee, with a placeholder for the amount.
  • Per Purchase Fee: Fees charged per transaction.
  • ATM Withdrawal Fees: Specified for both in-network and out-of-network withdrawals.
  • Cash Reload Fee: The cost to add money to the prepaid card.
  • ATM Balance Inquiry Fees: Charges for checking the card’s balance, applicable for both in-network and out-of-network ATMs.
  • Customer Service Fees: Costs for using automated or live agent customer service, per call.
  • Inactivity Fee: Charges applied per month when the card is not used.
• Additional Fees: The template provides space to list other types of fees that the card may incur, with placeholders for the fee type and amount. It includes a note on conditions that may waive the monthly fee, such as direct deposit or a minimum number of transactions.
• Overdraft/Credit Features: Options to indicate whether overdraft or credit features are available, guiding the issuer to select the appropriate option based on their program’s offerings.
• FDIC Insurance and Identity Verification Options: Several options are presented to reflect the card’s eligibility for FDIC insurance and whether cardholder identity verification is performed. The issuer is instructed to choose the option that aligns with their program and delete the rest.
• Additional Information: The document concludes with a reference to the CFPB’s website for general information about prepaid accounts and a reminder to consult the cardholder agreement for detailed terms and conditions related to fees and services.