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News
02.01.2023
New Reg Alert details CFPB ask for Credit Card Market Information
NAFCU sent member credit unions a Regulatory Alert Tuesday detailing the CFPBs recent request for information (RFI) on the consumer credit card market. The RFI is focused on changes in the credit card market related to terms and disclosures, as well as the practices of credit card issuers.

In the alert, NAFCU noted the CFPB is interested in understanding how these factors potentially impact underserved populations and innovation and competition within the credit card market. In announcing the RFI, the bureau indicated this request could inform future rulemaking decisions, including credit card late fees.

NAFCUs Regulatory Alert also highlighted that the CFPBs RFI:

suggests that certain practices of credit card issuers may uniquely affect special populations, such as servicemembers and their families, low- and moderate-income consumers, older Americans, and students;

is interested in potential obstacles faced by smaller financial institutions when launching a credit card product; and

seeks feedback on ways in which the Credit Card Accountability Responsibility and Disclosure (CARD) Act provisions encourage or discourage innovation.

NAFCU outlined some points for credit unions to consider as they provide feedback to the association, including:

potential improvements to disclosures of rates, fees, and other cost terms of credit card accounts that would benefit consumers, as well as the costs card issuers could incur from providing such disclosures;

the evolution of terms and practices of credit card features, such as credit card rewards, deferred interest promotions, and cash advances; and

barriers to entering the consumer credit market, especially obstacles smaller institutions may face when launching a credit card product.

Credit unions can provide comments to NAFCU through the Regulatory Alert until March 24; comments are due to the bureau April 24.

Copyright 2023. NAFCU. (link)
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