One more reason why the Consumer Financial Protection Bureauneeds to look at prepaid debit cards:
College students are finding their scarce dollars eaten up by fees on the cards, which many schools are using for student IDs and to disburse financial aid, according to a new study by U.S. Public Interest Research Group.
PIRG says information about the contracts between colleges and the financial institutions that provide the cards to students isn’t widely available, but at least one school struck a deal worth millions to the college. And it appears these deals may come at the expense of students.
Fees vary, of course, but it seems like the industry tacks on a charge for everything imaginable.
Students can end up paying a fee for: reloading money on the card, overdrafts, checking balances, closing the account, inactivity, transferring money, replacing a lost card, using an ATM and attending class. Ok, I made that last one up.