Engel yet others state bank lovers for prepaid businesses have to be closely analyzed, citing previous abuses associated with relationship.

Engel yet others state bank lovers for prepaid businesses have to be closely analyzed, citing previous abuses associated with relationship.

Payday lenders used “rent a bank” partners to evade limits that are usury some states, until regulators stepped in some years back. Cross-selling enabling issuers to trace cardholders’ spending practices then offer that information with other businesses, so that they can promote items in their mind, additionally needs to be checked, she stated.

Until its way becomes clear, the industry that is prepaid in the grey area between old-fashioned banking while the fringe financial system, offering customers cause for care.

“I’m a prepaid fan, and I also think this device could be a game-changer,” said Tim Sloane, an analyst aided by the Mercator Advisory Group, a study company that recommends the payments and banking companies. Continue reading “Engel yet others state bank lovers for prepaid businesses have to be closely analyzed, citing previous abuses associated with relationship.”