Earlier this summer, the Arizona Republic published a story about about Bank of America reaching a settlement over prepaid card fees that it charged to Arizona inmates.
Bank of America was given an exclusive contract with the Arizona Department of Corrections to provide prepaid cards to formerly incarcerated people. However, according to accounts from these former prisoners, the fees that B of A charged was unclear and/or were higher than what other customers were charged.
In our “Prepaid Cards 101″ guide, CRC cautions consumers that prepaid cards may have costly fees that aren’t always clearly described.
According to the Arizona Republic, BofA reached a pre-settlement and agreed to no longer charge the fees. The bank also agreed to pay $168,789 in compensation to potentially 70,000 former inmates if they all decided to file a claim.