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CFPB adds interest rate questions to credit card survey
The CFPB updated its survey of credit card issuers to provide consumers with more information related to interest rates. The bureau collects and publicizes credit card product data from the 25 largest issuers, as well as a sample of at least 125 additional issuers, in an effort to help consumers comparison shop and support competition within the credit card market.
“Given the rise in interest rates, the CFPB has modernized how it collects credit card data to spur competition and help families use products with lower rates and fees,” said CFPB Director Rohit Chopra. “These improvements will also give smaller relationship banks that offer better terms and better service another way to compete against the dominant credit card companies.”
The added questions attempt to show which products have lower interest rates more clearly, how consumers’ credit scores could impact the annual percentage rate (APR) they receive on a credit card product, and details on all credit card products offered by the largest issuers – not just the companies’ most popular products.
Responses to the terms of credit card plans (TCCP) survey are due to the bureau April 20. Relatedly, comments on the bureau’s request for information for its biennial report on the state of the consumer credit card market are due to NAFCU through its Regulatory Alert March 24 and to the bureau April 24.
NAFCU is actively engaged with the CFPB as it considers a proposed rule to drastically cut credit card late fees. The association continues to raise concerns to the bureau, noting that credit card fees are already disclosed upfront and this proposal will negatively affect low-income and underserved communities.
The latest Economic & CU Monitor survey focused on credit card late fees, including how credit unions use them and how they would be impacted if the rule were finalized. Results are expected to be released later this week.