On February 15, the CFPB released Bulletin 2022-02 to reiterate the prohibition in the Electronic Fund Transfer Act (EFTA) that financial companies with government benefit contracts may not require consumers to establish an account at a particular financial institution as a condition of receipt of a government benefit.  The bulletin notes that the prohibition under the EFTA ensures that consumers receiving the government benefits, such as Social Security payments, veterans’ benefits, and unemployment insurance have a choice with respect to how they receive their funds.
Continue Reading CFPB Takes Aim at Prepaid Card Providers Distributing Government Benefits