Credit Cards

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The CFPB is keeping the heat on credit card issuers.  While subtitled “A review of the impact of the CARD Act on the consumer credit card market,” the CARD Act report issued yesterday by the CFPB contains more than the CFPB’s impact findings.  Most notably, the report also describes the CFPB’s plans to scrutinize add-on products, deferred interest programs, rewards programs and other “areas of concern.” … Continue Reading

Yesterday the CFPB announced that it would hold a field hearing on credit cards in Chicago on October 2, 2013. The hearing will be held at the Harold Washington Library, located at 400 South State Street, and will commence at 11:00 a.m. CFPB Director Cordray plans to make an appearance, and testimony will be taken from consumer groups, industry representatives, and members of the public.… Continue Reading

On September 30, 2013, the CFPB will hold a forum in Washington, D.C. on financial products marketed to college students.  In January 2013, the CFPB issued a notice asking for input on a variety of issues with regard to these products, including the information shared between schools and financial institution providers, the way these products are marketed, the fee structures for these products, how these marketing arrangements are established, and student experiences with these products. … Continue Reading

The CFPB has amended Regulation Z to remove the requirement that a card issuer must consider the independent ability to pay of an applicant who is 21 or older.  The final rule, which will be effective upon publication in the Federal Register, retains the independent ability-to-pay requirement for applicants under the age of 21. … Continue Reading

The CFPB has published a final rule in today’s Federal Register amending Regulation Z (Truth in Lending) to remove fees paid before a credit card account is opened from the scope of the 25% limit on total fees that may be charged during the first year after account opening. The final rule also includes corresponding amendments to the Official Reg Z Commentary.  … Continue Reading

Credit CardsThe CFPB is seeking information on how the CARD Act amendments to the Truth in Lending Act have impacted consumers and the credit card industry. Signed into law in 2009 and implemented through a series of changes to Regulation Z that became effective in three stages spanning August 2009 to October 2011, the CARD Act imposed significant new restrictions on credit card pricing practices.… Continue Reading

The CFPB has released its proposed ability-to-pay rule. The proposed rule would amend the section of Regulation Z that currently provides that a credit card issuer must not open a credit card account or increase any limit on the account unless the card issuer considers the consumer’s independent ability to make the required minimum periodic payments based on the consumer’s income or assets and current obligations.… Continue Reading

In another demonstration of aggressive enforcement, the CFPB, on October 1, announced that it had settled its enforcement actions against various American Express entities alleging a wide range of compliance violations.  

The settlement requires American Express Bank, FSB and American Express Centurion Bank to make restitution payments totaling $85 million.  In addition, the banks, their holding company, and its parent company are required to pay a total of $27.5 million in civil monetary penalties to the CFPB, the Office of the Comptroller of the Currency, the Federal Reserve Board and the Federal Deposit Insurance Corporation.… Continue Reading

Last December, when the CFPB issued its prototype credit card agreement, the CFPB announced that Pentagon Federal Credit Union had signed up to test the prototype with its customers.   

According to a notice published yesterday by the CFPB in the Federal Register, Pentagon is launching a testing program this fall of a “short-form credit card agreement” which it will be sending to new cardholders in the fourth quarter of 2012 and the first quarter of 2013. … Continue Reading

Last month, when the CFPB announced its decision to publicly disclose credit card complaint data and its proposal to also publicly disclose data from complaints about other financial products and services, we questioned the value of such data to the public. Soon after, we wrote about an example we saw of how the data can lead to misleading information. … Continue Reading