The bureau will gather information from the public and from major credit card companies to publish its biennial report to Congress in late 2023.
01/26/2023 1:55 P.M.
2 minute read
As part of a biennial review of the credit industry, the Consumer Financial Protection Bureau (CFPB) released a request for information on Tuesday asking for public input on how the consumer credit market is operating.
The bureau is looking for more up-to-date data on several facets of the credit card user experience.
Under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), which was passed by Congress in order to provide honest and open procedures for credit extensions in the credit card market, the CFPB is required to study the credit card sector and report its findings to Congress every two years.
“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,” said CFPB Director Rohit Chopra.
The CFPB is mandated by the CARD Act to conduct an exhaustive analysis of the whole sector to determine whether regulatory adjustments are required. As part of this study, the CFPB will receive feedback from the public, and major credit card issuers will be monitored to gather information on their operational procedures. The CFPB will publish its 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.
The request for information was published in the Federal Register, and the public will have until April 24, 2023, to submit their comments.
Submit responsive information and other comments, identified by the document title and Docket No. CFPB-2023-0009, by any of the following methods:
- Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments.
- Email: [email protected]. Include the document title and Docket No. CFPB-2023-0009 in the subject line of the message.
Additionally, the CFPB has issued market-monitoring directives to a variety of major and specialized credit card issuers. The orders demand information about major credit card issuers’ procedures regarding, among other things, applications and approvals, debt collection, and digital account servicing that is not currently covered by any other data-gathering tools.
For more information, read the Request for Information Regarding Consumer Credit Card Market.
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