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TRENTON – The full Senate today approved a resolution sponsored by Senate President Richard J. Codey (D-Essex) that calls on the Board of Governors of the Federal Reserve to use its muscle to regulate the maze of hidden fees that have cropped up in the growing pre-paid debit card industry. Sen. Codey noted that as these cards continue to grow in popularity, more and more consumers have become frustrated by the litany of hidden fees imposed by an industry that preys on both the young and the poor while its revenue is expected to balloon to over $100 billion in the next several years.

“The Federal Reserve needs to be proactive on this issue, unlike credit card reforms, which took years of consumer abuse to prompt action from Congress,” said Sen. Codey. “Essentially you have this cottage industry that’s popped up, which amounts to nothing more than a tax on the young and a tax on the poor because it’s designed to appeal to struggling students and low-income families. The Federal Reserve must act now to require a level of transparency that will empower consumers to make smart choices when buying these cards.”

TRENTON – The Senate Commerce committee today approved a resolution sponsored by Senate President Richard J. Codey (D-Essex) that calls on the Board of Governors of the Federal Reserve to use its muscle to regulate the maze of hidden fees that have cropped up in the growing pre-paid debit card industry. Sen. Codey noted that as these cards continue to grow in popularity, more and more consumers have become frustrated by the litany of hidden fees imposed by an industry that preys on both the young and the poor while its revenue is expected to balloon to over $100 billion in the next several years.

“The Federal Reserve needs to be proactive on this issue, unlike credit card reforms, which took years of consumer abuse to prompt action from Congress,” said Sen. Codey. “Essentially you have this cottage industry that’s popped up, which amounts to nothing more than a tax on the young and a tax on the poor because it’s designed to appeal to struggling students and low-income families. The Federal Reserve must act now to require a level of transparency that will empower consumers to make smart choices when buying these cards.”