On March 17, 2015, the CFPB issued a Request for Information (RFI) to further understand how the credit card market is working in practice and how credit card protections affect consumers and credit card issuers.
The CFPB is examining the continuing impact of the 2009 Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, as well as gathering information on "specific areas of interest." In addition to the "areas of further interest" from the CFPB's October 2013 CARD Act Report, the CFPB identifies two additional interests for 2015: credit card debt collection and "ability to pay" assessments. The CFPB will use the comments to help inform its future report to Congress on the state of the consumer credit card market. Comments in response to the RFI are due on May 18, 2015.
- CARD Act Impact:
- Credit Card Agreements and Practices: The terms and conditions of agreements and how these may have changed since the CFPB's last review, as well as the pricing, marketing, underwriting, or other practices of credit card issuers.
- Effectiveness of Disclosures: A cost-benefit analysis of current disclosure requirements.
- Adequacy of Consumer Protections: Improvements and updates to current consumer protections that are necessary, with a focus on acts, practices, or unlawful discrimination in the credit card market that are unfair to consumers.
- Prior CFPB "Interest Areas": Credit Card Add-on Products; Fee Harvester Cards; Deferred Interest Products; Rewards Products; Grace Periods; and Online Disclosures.
- CFPB's New Focus Areas:
- Debt Collection: Debt collection practices within the credit card industry, including card issuers' use of and relationship with third-party collection agencies.
- Ability to Pay: Implementation of the "ability to pay" standards, at both the initial extension of credit and any increases in a credit line.
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For more information, please contact Venable’s CFPB Task Force.