Report: 2/3 of credit cards carry revolving balance
A new report from the CFPB revealed that two-thirds of actively used credit card accounts don't pay off the full balance at the end of the billing cycle. Those accounts that carry a revolving balance do so continuously for 10 months on average; 15 percent revolve continuously for two years or more.
NAFCU Chief Economist and Vice President of Research Curt Long, in a recent NAFCU Macro Data Flash report on consumer credit, noted that delinquency rates for credit card loans are on the rise "but are generally on par with pre-crisis levels."
The CFPB report, "Data Point: Credit Card Revolvers," uses data from the bureau's credit card database, specifically a sample of large banks' credit card portfolios between April 2008 and April 2016. It "focuses on the duration of credit card indebtedness and the manner by which credit card debt is repaid."
Other key findings from the report include:
- credit score is not a clear predictor of repayment trends;
- revolvers either take on debt on a particular account and make regular payments on their debt, or revolve about the same amount on a particular account for long periods and then make a lump-sum payment of the balance in full; and
- there are geographical trends in how and why consumers choose to revolve balances on their credit cards.
On credit score reporting, the CFPB has estimated that 26 million Americans are "credit invisible" because they do not have a credit record. NAFCU and its member credit unions have long advocated for the use of alternative models that more accurately capture creditworthy borrowers and permit them access to affordable credit.
The CFPB is currently in the process of reviewing stakeholder feedback to include in its biennial report on the state of the credit card market, which is expected later this year.
Accounts Consumer Lending
Add to Calendar 2020-03-05 14:00:00 2020-03-05 14:00:00 The Servicemembers Civil Relief Act and the Military Lending Act: Common Pitfalls and Emerging Issues Under both the Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA), there has been a continued pattern of enforcement actions and private litigation—with significant monetary penalties and substantial reputational exposure for creditors. As such, this is an area where every credit union should understand the law. During this webinar, Sasha Leonhardt, of Buckley LLP will discuss regulatory and enforcement trends arising from these two laws. Participants attending this webinar will also leave with a greater understanding of the SCRA’s and MLA’s requirements, as well as an awareness of key areas where credit unions can strengthen their protections for servicemembers. Key Takeaways Understand the common and uncommon ways the SCRA and MLA affect your credit union Anticipate issues arising from servicemember’s accounts before they become pain points Review real-world scenarios regarding SCRA and MLA compliance Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until March 5, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Compliance staff Risk management staff Legal staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Education Manager, NAFCU Learning Objectives: Identify and discuss implementation issues. Discuss enforcement considerations. Review responses to common questions regarding the California Consumer Privacy Act (CCPA). Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Regulatory Ethics - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
The Servicemembers Civil Relief Act and the Military Lending Act: Common Pitfalls and Emerging Issues
Credits: NCCO, NCRM, CPE
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