Vendors that issue reloadable prepaid cards are crying foul over the legislation that will create the new Consumer Financial Protection Agency. They claim that it will make it impossible for anyone but banks to issue the cards. At the heart of their argument is their claim that they help millions of consumers that don’t use the banking system or are using these cards are a budgetary tool.

This is a load of crap. We’ve reported before how these type of cards have the highest fees, have very little fraud protection, and don’t help customers build credit. While this legislation may be a little wide in its unintended consequences, it is time someone stepped in to set this industry right.