Consumers shut out of their accounts with the popular RushCard prepaid debit card for up to 10 days have few options for taking action against the company, and the Consumer Financial Protection Bureau may also be stymied if the problems were caused by a technical glitch.

“The CFPB has enforcement jurisdiction over nonbank prepaid card companies even though it has neither proposed a larger participant rule for the prepaid card industry nor issued a final prepaid card rule,” said Alan Kaplinsky, a partner at Ballard Spahr LLP. “It can investigate prepaid card companies if the CFPB believes that they are violating existing laws, including [unfair, deceptive or abusive acts and practices].”

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Consumer Financial Services