CA AB2252

Requires child support payments deposited directly to recipient accounts to be placed only in "qualifying accounts" as defined by the bill.

Qualifying accounts include demand deposit or savings accounts at insured financial institutions, or prepaid card accounts that meet specific federal insurance and consumer protection requirements.

Prohibits prepaid card issuers from accepting or facilitating child support payment deposits to prepaid cards that lack required federal deposit insurance passthrough coverage or that include automatic credit/overdraft features.

Prepaid card issuers must comply with all Electronic Fund Transfer Act (EFTA) requirements and consumer protections applicable to payroll card accounts.

Effective July 23, 2014.