1) Jan 24 -- CFPB Seeks Public Input on Consumer Credit Card Market: Feedback from consumers, industry, advocates will help inform biennial credit card market report [news release]
The Consumer Financial Protection Bureau (CFPB) issued a request for information today seeking public feedback on how the consumer credit market is functioning as part of a biennial review of the industry. The CFPB is seeking more and current information on various aspects of the consumer experience with credit cards. Congress enacted the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) to establish fair and transparent practices related to the extension of credit in the credit card market. The CARD Act mandates the CFPB to conduct a review of the credit card industry every two years and report to Congress.
“The CFPB undertakes a biennial review of the consumer credit card market to ensure guidelines and guardrails to protect consumers are working as intended,” said CFPB Director Rohit Chopra. “This request for information is a meaningful data point that will inform our decision-making on any potential changes, and the CFPB invites consumers, credit card issuers, industry analysts, consumer groups, and the general public to submit information and comments relevant to the topic.”
The CARD Act directs the CFPB to undertake a comprehensive review of the entire industry to help determine whether regulatory adjustments are needed. This review includes seeking public feedback as well as issuing market-monitoring orders to major credit card issuers to collect information on their business practices. The CFPB publishes a report to Congress of its biennial review of the credit card market, and will publish its sixth report later in 2023.
The CFPB is interested in hearing about people’s overall experiences with credit card products. In particular, the request is seeking 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 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
-- Consumer credit card product innovation
This list of topics should not be viewed as exhaustive. The request for information will be published in the Federal Register, and the public will have until April 24, 2023 to submit their comments.
The CFPB has also issued market-monitoring orders to a diverse group of major and specialized credit card issuers. The orders seek information that no other data-gathering mechanisms currently address, such as the practices of major credit card issuers relating to, among other topics, applications and approvals, debt collection, and digital account servicing.
News release: https://www.consumerfinance.gov/about-us/newsroom/cfpb-seeks-public-input-on-consumer-credit-card-market/
2) Jan 27 -- FRN: Request for Information Regarding Consumer Credit Card Market
Section 502(a) of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act or Act) requires the Consumer Financial Protection Bureau (CFPB) to conduct a review (Review) of the consumer credit card market, within the limits of its existing resources available for reporting purposes. In connection with conducting that Review, and in accordance with section 502(b) of the Act, the CFPB is soliciting information from the public about a number of aspects of the consumer credit card market as described further below. Comments must be submitted on or before April 24, 2023, to be assured of consideration.
Section 502(a) of the CARD Act requires the CFPB to conduct a review, within the limits of its existing resources available for reporting purposes, of the consumer credit card market every two years. To inform that review, section 502(b) instructs the CFPB to seek public comment. The CFPB's first such review was published in October 2013; the CFPB's second such review was published in December 2015; the CFPB's third such review was published in December 2017; the CFPB's fourth such review was published in August 2019; the CFPB's fifth such review was published in September 2021.
To inform the CFPB's next review, the CFPB hereby invites members of the public, including consumers, credit card issuers, industry analysts, consumer groups, and other interested persons to submit information and other comments relevant to the issues expressly identified below, as well as any information they believe is relevant to a review of the credit card market.
The CARD Act was signed into law in May 2009. Passage of the Act was expressly intended to “establish fair and transparent practices related to the extension of credit” in the credit card market. To achieve these agreed-upon purposes, the Act changed the requirements applicable to credit card practices in a number of significant respects.
In connection with its pending Review, the CFPB seeks information from members of the public about how the credit card market is functioning. The CFPB seeks comments on the experiences of consumers and credit card issuers in the credit card market and on the overall health of the credit card market, as outlined in section 502(a) and in (1) through (7) below. While the CFPB identifies specific topics of interest below, the CFPB also wants to be alerted to and understand the information that consumers, credit card issuers, industry analysts, consumer groups, and other interested persons believe is most relevant to the CFPB's review of the credit card market, so this list of subjects should not be viewed as exhaustive. Commenters are encouraged to address any other aspects of the consumer credit card market that they believe would be of interest or concern to the CFPB.
Please feel free to comment generally or respond to any or all of the questions below but please indicate in your comments on which topic areas or questions you are commenting:
(1) The Terms of Credit Card Agreements and the Practices of Credit Card Issuers . . .
(2) The Effectiveness of Disclosure of Terms, Fees, and Other Expenses of Credit Card Plans . . .
(3) The Adequacy of Protections Against Unfair, Deceptive, or Abusive Acts or Practices Relating to Credit Card Plans . . .
(4) The Cost and Availability of Consumer Credit Cards . . .
(5) The Safety and Soundness of Credit Card Issuers . . .
(6) The Use of Risk-Based Pricing for Consumer Credit Cards . . .
(7) Consumer Credit Card Product Innovation and Competition . . .