CFPB seeks input on trends in consumer credit card market
The 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.
Add to Calendar 2023-11-28 09:00:00 2023-11-28 09:00:00 Growing Creatively & Innovatively in 2024 Listen On: Key Takeaways: [0:58] What can credit unions do to best prepare themselves for 2024? [2:12] Although he sees a glimmer of hope, Jack points out that the liquidity crisis and slow prepayment speeds hamper rapid recovery. [5:22] We discuss how credit unions seek low loan growth through member-centric strategies such as second mortgages and home improvement lending. [7:34] Credit unions are leveraging advancing technology for member-focused engagement. [9:31] How will technology continue to evolve and affect credit unions? [11:43] What role does AI play in innovative growth? [14:14] Credit unions adopt technology for efficiency, enabling staff to focus on personalized member interactions, especially with younger generations. [17:14] Closing thoughts, emphasizing competition against banks and fintech for younger generations. Web NAFCU email@example.com America/New_York public
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