Report Highlights Sen. Perdue’s Prepaid Debit Card Corruption

Georgia Senator Using Arcane Legislative Procedures to Benefit Major Donor That Just Settled Fraud Charges with Feds


 

WASHINGTON, D.C. – In a front page story today the Atlanta Journal-Constitution reported on Sen. David Perdue’s (R-GA) use of an obscure parliamentary procedure in an effort to roll back new rules on prepaid debit cards. Sen. Perdue filed a discharge petition seeking to nullify the Consumer Financial Protection Bureau’s (CFPB) “Prepaid Rule” before it goes into effect next spring–a move that will harm millions of hard-working Americans while benefiting one of his major donors to the tune of $80 million.

From the Atlanta Journal-Constitution’s report:

Proponents say the change would extend basic account protections to tens of millions of predominantly low- and middle-income customers, some of whom use the cards in lieu of traditional checking accounts.

. . . Consumers currently pay tens of millions annually in overdraft charges on such prepaid credit cards. Much of that money goes to one Georgia firm, Netspend, whose parent company is the Columbus-based Total System Services.

Perdue has received $17,500 in campaign donations from Total System Services’ political action committee since the 2014 election cycle. He also accepted a similar amount from the company’s current and former top executives in the runup to his election, according to the money-in-politics site Open Secrets.

The common sense rule is supported by the industry trade group The Center for Financial Services Innovation and Green Dot, the largest provider of prepaid debit cards in the United States.

Just one day after Senator Perdue filed the discharge petition, Netspend agreed to refund consumers $53 million to settle Federal Trade Commission (FTC) charges that it had “deceived consumers, many of whom do not have bank accounts, about access to funds deposited on defendants’ debit cards.”

Trump and his Republican allies like David Perdue promised to ‘drain the swamp’ but instead they’ve doubled down, engaging in the worst kind of crony capitalism that enriches the wealthy at the expense of hard-working Americans,” said Karl Frisch, executive director of Allied Progress.

He continued, “This is nothing more than modern-day corruption happening in broad daylight. We call on Senators from both parties to oppose this action and prove that they will stand with working class people over crooked corporations.”

In the coming days, Allied Progress will launch campaigns to hold Sen. Perdue accountable and urge senators from both parties to oppose his destructive legislation.

To speak with Karl Frisch about Sen. Perdue and the prepaid debit card rule, please contact Charlie DiPasquale at 202-464-6916 or cdipasquale@skdknick.com.

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Allied Progress is a nationwide, progressive advocacy organization that uses hard-hitting research and creative campaigns to hold Wall Street and powerful special interests accountable. Since launching in 2015, the organization has led high-profile campaigns on several issues including reforming the payday lending industry and exposing the those working to cripple the Consumer Financial Protection Bureau (CFPB).

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