How Well Is the Credit Card Market Functioning? The CFPB Is Asking
The bureau wants to hear from credit unions and other FIs about the consumer experience with credit cards.
In an effort to comply with the Credit Card Accountability Responsibility and Disclosure Act (CARD Act), the CFPB announced Tuesday that it’s seeking input from financial institutions for public feedback “on how the consumer credit market is functioning.”
Every two years the CFPB conducts its review of the credit card market and how it is or isn’t helping consumers and credit card issuers. The CARD Act mandates that the bureau conduct this review and report to Congress.
Under the CARD Act, the CFPB’s review is an attempt to determine if any credit card regulatory adjustments are necessary. The last such report by the CFPB was sent to Congress in September 2021.
According to Tuesday’s announcement from the bureau, the next credit card market review will be published later in 2023.
In a prepared statement, CFPB Director Rohit Chopra said, “The CFPB undertakes a biennial review of the consumer credit card market to ensure guidelines and guardrails to protect consumers are working as intended. 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.”
According to the CFPB, officials are interested in hearing about people’s overall experiences with credit card products. The CFPB seeks information and comments on 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.
The deadline for comments is April 24, 2023.