January 25, 2023

CFPB seeks input on trends in consumer credit card market

CFPB logoThe CFPB Tuesday issued a request for information for its biennial report on the state of the consumer credit card market. Relatedly, the bureau is expected to release a proposed rulemaking this month addressing credit card late fees collected by financial institutions.

The bureau is required by the Credit Card Accountability Responsibility and Disclosure (CARD) Act to review the credit card industry every two years and report its findings to Congress. The last report, issued in 2021, found declines in credit card debt and increases in digital engagement in the wake of the coronavirus pandemic.

The new request in particular seeks information on:

  • terms of credit card agreements and the practices of credit card issuers;
  • effectiveness of disclosure of terms, fees, and other expenses of credit card plans;
  • adequacy of protections against unfair or deceptive acts or practices (UDAAP) relating to credit card plans;
  • cost and availability of consumer credit cards;
  • safety and soundness of credit card issuers;
  • use of risk-based pricing for consumer credit cards; and
  • consumer credit card product innovation.

Public comments are due to the CFPB April 24.

Last week, NAFCU joined with other financial trade groups to remind the CFPB of its obligations under the Small Business Regulatory Enforcement Fairness Act (SBREFA) as it pursues the credit card late fees rulemaking to take into account its impact on small entities. NAFCU has flagged the potential consequences of this rulemaking, including limiting credit availability, and noted that credit unions offer several solutions to members experiencing financial hardship.

NAFCU will continue to monitor the CFPB’s efforts related to the credit card market and ensure credit unions can continue to provide safe, affordable credit options to their members.