Manley Williams Quoted in Bank Safety & Soundness Advisor Article, "What You Need to Know About Proposed Prepaid Card Regulation"Manley Williams
Manley Williams was quoted in the Bank Safety & Soundness Advisor article, titled "What You Need to Know About Proposed Prepaid Card Regulation," on December 1, 2014.
Manley Williams, a partner with Buckley Sandler LLP in Washington said “the proposal could crimp innovation with prepaid cards. A growing number of community banks, teaming with larger card companies that have existing infrastructure, have seen prepaid cards as a way to support the un-banked and under-banked, an area of concern for the CFPB and the banking agencies. For those consumers, prepaid cards with a credit feature can offer a relatively low-cost alternative to checking accounts, and combined with online bill payment, an avenue to paying utility and other regular bills. “It permits transactions without requiring the consumer to have a transaction account,” said Williams.
“It would be a shame if what this stopped was a community bank that wanted to meet the relatively small, open-ended credit needs of these borrowers.” Williams said. “I don’t believe disbursement of loan proceeds onto a prepaid card presents any unique risks to the consumer that require additional protections. This proposal looks like it might go too far and shut off useful products by banks that are trying to leverage the existing infrastructure.”