This video shows what happens when someone gets a prepaid card without checking out the fees first.
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Transcript:
David didn't like carrying cash around after pay day. He wanted a different way to pay for things. But he didn't want a bank account or credit card, so David decided that a prepaid debit card would solve the problem. He could load money on the card and use the card to buy things.
David found a bunch of prepaid cards at the store. He chose the card recommended by his favorite singer. He loaded $200 on the card and went shopping.
But when David checked his balance a few weeks later, he got a surprise. He didn't know he paid $10 to activate the card, $12 a month to maintain it, $3 every time he bought something, $6 to check his balance, $3 to get cash from an ATM, $4 to get his statement in the mail, $2 to talk to a customer service agent, and $3 to reload the card. David loaded $200 on the card, but got to spend only $157.
So David did some research and found a prepaid card with lower fees. He got rid of the first card and switched to the new one. He's much happier now.
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The Federal Trade Commission deals with issues that touch the economic life of every American. It is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy. The FTC pursues vigorous and effective law enforcement; advances consumers' interests by sharing its expertise with federal and state legislatures and U.S. and international government agencies; develops policy and research tools through hearings, workshops, and conferences; and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies.
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