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Consumer advocates urge CFPB to ban prepaid credit offerings.

The Wall Street Journal (9/6, Kapner, Subscription Publication, 2.08M) reports that as Americans continue a rapid adoption of prepaid debit cards that increasingly act as a credit alternative, consumer advocates are calling for the Consumer Financial Protection Bureau to ban the new type of plastic from providing credit. The National Consumer Law Center, the Center for Responsible Lending and the Consumer Federation of America have joined together to call on the agency to crackdown on the practice, arguing in a letter to the regulator that a ban is "the most important step that the CFPB can take to ensure that prepaid cards fulfill their promise," citing fees and payment structures they claim are predatory. The agency is evaluating the proposal as it considers wider supervision of the cards, the Journal explains.

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