The Consumer Financial Protection Bureau is seeking comment from consumers, industry, advocates and other stakeholders on how the credit card market is functioning for consumers. The bureau submitted the request for information to the Federal Register on March 17.
“The bureau is seeking to further understand how the credit card market is working in practice and how credit card protections affect consumers and credit card issuers,” said CFPB Director Richard Cordray. “As we undertake this review, the bureau wants to ensure it understands the information that consumers, industry, advocates and other stakeholders believe is most relevant.”
The bureau is requesting information on how the terms and conditions of credit card agreements may have changed since the bureau conducted a review two years ago. It wants to know how banks have changed their practices, particularly for pricing, marketing and underwriting. It also wants to know if the changes have benefited or harmed consumers.
The CFPB would like comment on consumers’ understanding of rewards products when applying for credit cards. It wants to know if disclosures for rewards products are clear and transparent, and if they can be improved to benefit consumers.
The bureau also is looking for information on unfair or deceptive acts and practices that exist in the credit card market and their frequency and effect on consumers. It seeks feedback on collections for past due accounts by banks and third-party collection agencies. It also wants to know how often banks use third-party debt collection agencies.
The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, passed by Congress in 2009 with the goal of bringing fairness and transparency to the credit card market, requires the CFPB to conduct a review of the consumer credit market every two years. The bureau’s request for public comment is a part of that review and will be included a public report to Congress on the state of the credit card market. The bureau will use the report to inform future policy decisions on credit cards.