GENERAL-USE PREPAID CARDS

Amends the Transmitters of Money Act. Creates a provision concerning general-use prepaid cards. Provides that all vendors of general-use prepaid cards must be licensees or authorized sellers of a licensee under the Act. Provides that the permitted fees a vendor may charge includes an activation fee not to exceed the greater of $1 or 1% of the value of the general-use prepaid card. Provides that a prohibition on the imposition of certain fees or charges shall provide that it is unlawful for any person to impose a reloading fee, balance check fee, overdraft protection fee, dormancy fee, inactivity charge or fee, or service fee with respect to a general-use prepaid card. Provides that there are exceptions to the prohibition on imposition of certain fees or charges and the prohibitions shall not apply to any general-use prepaid card (i) that is distributed pursuant to an award, loyalty, or promotional program and (ii) with respect to which, there is no money or other value exchanged. Creates a provision concerning check-cashing. Provides that any vendor issuing, selling, or offering for sale general-use prepaid cards may not commit, or have committed on behalf of the vendor, certain specified acts. Provides that all vendors must comply with all State and federal requirements applicable to general-use prepaid cards to be in compliance. Provides that no licensee under the Act or an authorized seller of a licensee may cash checks for a fee unless licensed under the Currency Exchange Act or unless the licensee or authorized seller is an entity exempt under the Currency Exchange Act and operating in compliance with the Check Cashing Act. Makes changes to the provisions concerning definitions and notice of source of instrument and transaction records.