Celebrity personal finance expert Suze Orman has launched a prepaid debit card that, if it becomes popular, could wind up costing credit unions significant amounts of money.
Orman has appeared widely for the NCUA on behalf of credit unions, highlighting the fact that money deposited in credit unions also carries federal insurance just as deposits in federally insured banks do. She has also often promoted credit unions as a consumer-friendly alternative to banks in her television programs carried on CNBC.
Orman's card, which she dubbed the Approved Card, is a prepaid debit card that is decoupled from any corresponding deposit account that the cardholder owns or controls. Such decoupled debit cards are not new and have been used by different issuers, particularly those seeking to draw unbanked customers.
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