CFPB Seeks Public Input on Consumer Credit Card Market
On January 24, the Consumer Financial Protection Bureau (CFPB) issued a request for information seeking public feedback on how the consumer credit market is functioning.
The CFPB’s request for information is part of a comprehensive review of the entire industry, as required by the Credit Card Accountability Responsibility and Disclosure Act (CARD Act), to help determine whether regulatory adjustments are needed. The review, which takes place every two years, involves seeking public feedback and submitting market-monitoring orders to major credit card issuers. Its findings will be published in a report to Congress later in 2023.
Overall, the CFPB is interested in learning more about people’s experience with credit card products. For instance, the request seeks information on a variety of issues, including the following:
- 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.
In addition, the CFPB has issued market-monitoring orders to a group of credit card issuers, seeking information such as the practices of these issuers relating to applications and approvals, debt collection, and digital account servicing.