CT SB00201

Repeals and replaces Section 42-460a of the general statutes effective October 1, 2012 to regulate general-use prepaid cards as defined in 12 CFR 205.20(a)(3).

Prohibits expiration dates on underlying funds in prepaid cards, but allows expiration dates on the card itself if cardholders can receive unexpended balances and accrued interest through a linked financial account.

Permits cardholders to set custom expiration dates of at least 90 days to expedite return of unexpended balances and accrued interest, and allows transfer of unexpended balances to FDIC-insured bank accounts offering higher yields.

Requires written disclosures on cards stating that funds do not expire (unless a custom expiration date is set), provides toll-free numbers and websites for replacement cards, and prohibits fees for card replacement or balance transfers unless the card is lost or stolen.

Requires sellers to establish policies ensuring consumers can purchase cards with at least five years remaining before expiration, unless the cardholder links a financial account and sets a custom 90-day expiration date for automatic balance transfer.