Sixty-Eight Organizations Urge Federal Consumer Agency to Protect Former Prisoners from Excessive Release Debit Card Fees
Washington, DC – Yesterday, the Human Rights Defense Center (HRDC) filed a comment with the Consumer Financial Protection Bureau (CFPB), an independent federal agency, urging the CFPB to add language related to protecting the finances of released prisoners to a proposed rule regarding regulation of prepaid debit cards. Sixty-eight criminal justice reform groups, civil rights organizations and public interest law clinics joined in the comment.
The comment requests that the CFPB exercise its authority under the Electronic Fund Transfer Act (EFTA) to add language to a proposed rule regarding regulation of prepaid accounts under EFTA and the Truth in Lending Act that extends the ban on compulsory use to prepaid debit cards given to released prisoners that contain the funds remaining in their prison accounts, bans all fees associated with such cards and provides other protections as needed.
The use of third-party release debit cards is a growing trend in U.S. prisons and jails, where companies see an opportunity to profit off people who have no choice on whether or not to use release debit cards with associated fees. Around 650,000 people are released from state and federal prisons each year, while approximately 11.6 million cycle through local jails.