Category Archives: Credit Cards

CFPB eliminates independent ability-to-pay requirement for credit card applicants 21 or older

By Barbara S. Mishkin on May 2nd, 2013 Posted in Credit Cards

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. Issuers… More >

CFPB issues final rule excluding credit card pre-account opening fees from 25% limit

By Barbara S. Mishkin on March 28th, 2013 Posted in Credit Cards

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… More >

CFPB wants information about the CARD Act’s impact

By Barbara S. Mishkin on December 21st, 2012 Posted in Credit Cards

The 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… More >

CFPB proposes amending credit card ability-to-pay rule

By Heather S. Klein on October 18th, 2012 Posted in Credit Cards

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… More >

Some observations on the CFPB’s $112.5 million settlement with American Express

By Barbara S. Mishkin on October 4th, 2012 Posted in CFPB Enforcement, Credit Cards

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… More >

Testing of CFPB prototype credit card agreement to begin this fall

By Barbara S. Mishkin on September 19th, 2012 Posted in Credit Cards

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… More >

ABA comments on CFPB plans for expanded release of consumer complaint data

By Barbara S. Mishkin on July 25th, 2012 Posted in Credit Cards

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… More >

Is the CFPB using its enforcement tool as de facto rulemaking?

By Alan S. Kaplinsky on July 20th, 2012 Posted in CFPB Rulemaking, Credit Cards

Overshadowed by the publicity surrounding the announcement of the CFPB’s settlement of its first enforcement action was the CFPB’s concurrent release of a bulletin providing general guidance on marketing credit card add-on products. While focused on credit card add-on products, the bulletin is also intended to serve as guidance for the marketing of similar products… More >

Initial analyses of CFPB complaint data show misleading nature of data

By Stefanie Jackman on June 28th, 2012 Posted in CFPB General, Credit Cards, Hot Issues

Recall that when the CFPB launched the Consumer Complaint Database, its expressed hope that “the marketplace of ideas” – i.e., the public – would study and analyze the information disclosed in the database in order to “determine what the data show[s].” 77 FR 37559. The CFPB also stated that the purpose of the database is… More >

CFPB launches consumer complaint database

By Stefanie Jackman on June 19th, 2012 Posted in CFPB General, Credit Cards, Hot Issues

Today, the Consumer Financial Protection Bureau launched its Consumer Complaint Database, which allows the public to view consumer complaints filed against credit card issuers. The Bureau also announced that it is submitting a request to the Federal Register seeking comments on extending the database to include other financial products in addition to credit cards –… More >

CFPB suggests possible interim fix for credit card ability-to-pay rule concerns

By John L. Culhane, Jr. on June 8th, 2012 Posted in CFPB Rulemaking, Credit Cards

Testimony to Congress earlier this week from Gail Hillebrand, CFPB Associate Director for Consumer Education and Engagement, seems to suggest a way for card issuers to deal with concerns about the Reg. Z rule that the Fed adopted to implement the CARD Act’s ability-to-pay requirement, at least while the CFPB considers whether to change the rule. As… More >

CFPB proposes excluding credit card pre-account opening fees from 25% fee limit

By Barbara S. Mishkin on April 16th, 2012 Posted in Credit Cards

The CFPB published a proposed amendment to Regulation Z (Truth in Lending) in the Federal Register on April 12 that would remove fees paid before a credit card account is open from the scope of the 25% limit on total fees that may be charged during the first year after account opening. The proposal also… More >

American Bankers Association weighs in on proposed policy for credit card complaint data

By Anthony C. Kaye and Steven D. Burt on February 2nd, 2012 Posted in CFPB Rulemaking, Credit Cards, Hot Issues

On January 30, 2012, the American Bankers Association delivered a comment letter to the CFPB in which it expressed strong disagreement with the CFPB’s proposed policy statement on “Disclosure of Certain Credit Card Complaint Data“. The ABA expressed concern that the complaint data will not help and may actually mislead consumers because it is “incomplete, unrepresentative,… More >

CFPB updates complaint system manual

By Barbara S. Mishkin on January 19th, 2012 Posted in Credit Cards, Mortgages

The CFPB has released an updated version of its Company Portal Manual that describes the operation of the portal through which companies can view and respond to consumer complaints submitted through the CFPB’s complaint system (which the CFPB plans to expand beyond complaints about credit cards and mortgages to include complaints about other products such as… More >

Credit card ability to pay rule draws fire

By Barbara S. Mishkin on December 13th, 2011 Posted in CFPB Rulemaking, Credit Cards

It’s not often that Barney Frank agrees with the American Bankers Association but, when it comes to Regulation Z’s ability to pay rule for credit cards, it seems that Representative Frank now thinks the ABA got it right and the Fed got it wrong. The Reg. Z rule, adopted by the Fed in final form… More >

Further thoughts on the bureau’s prototype credit card agreement

By Jeremy T. Rosenblum on December 9th, 2011 Posted in Credit Cards, Hot Issues

I share much of Chris’ reaction to the Bureau’s prototype cardholder agreement. The Bureau staff has labored mightily and has managed to produce an agreement that is six-(not two) pages of material. In considering the Bureau’s success or lack of success in producing a short cardholder agreement, it is important to note that the Bureau’s… More >

The Bureau’s 2+4 page prototype credit card agreement: simplification taken too far

By Christopher J. Willis on December 9th, 2011 Posted in Credit Cards, Hot Issues

On December 7, 2011, the CFPB released its “prototype” credit card agreement, cautioning that it is “not a model form” and that its use is “not mandatory.” Although the prototype agreement is being referred to as a “2-page agreement,” it incorporates a series of definitions by reference that comprise a further 4 pages of text. … More >

What’s the CFPB planning to do with credit card complaint data?

By Barbara S. Mishkin on December 7th, 2011 Posted in Credit Cards

Since the day it officially opened its doors for business (July 21), the CFPB has been taking credit card complaints on its website and via calls to a toll-free number. Now it has issued a proposed policy statement to address its plans for publicly disclosing credit card complaint data through a database and in published periodic… More >

In calling for increased regulation of reloadable prepaid cards, consumer groups should be careful what they wish for …

By Stefanie Jackman on December 6th, 2011 Posted in CFPB General, CFPB Rulemaking, Credit Cards, Debit Cards

By Jeremy T. Rosenblum and Stefanie H. Jackman Recently, the Consumers Union, Center for Public Policy Priorities, Center for Responsible Lending, Coalition of Religious Communities, National Consumer Law Center, SC Appleseed Legal Justice Center and U.S. PIRG called on the CFPB to extend various protections afforded to debit cards under the Electronic Fund Transfer Act… More >

What is the Bureau up to with credit card complaints?

By Christopher J. Willis on December 5th, 2011 Posted in Credit Cards, Hot Issues

On November 30, 2011, the CFPB released its interim report on credit card complaints, including some statistics about the complaints, and the conclusions it has drawn from the 5,000 credit card complaints it received since July 21. One of the most striking things about the data is how little it seems to relate to the… More >

CFPB shares manual for on-line complaint system

By Barbara S. Mishkin on October 6th, 2011 Posted in Credit Cards

As part of its on-line credit card complaint system, the CFPB has set up a portal to serve as the interface between the CFPB and card issuers. (In earlier blog postings, we described the kinds of information the CFPB’s complaint form asks consumers to provide and the CFPB’s about- face on sharing discrimination claims with… More >

Plain language of the CARD Act wins the day on pre-account credit card fees

By Christopher J. Willis on October 4th, 2011 Posted in CFPB Rulemaking, Credit Cards

The CFPB has received its first opinion from a federal court regarding the validity of a rule it was tasked with enforcing. In a September 23, 2011 opinion, the U.S. District Court for the District of South Dakota held that the revised version of Regulation Z, § 226.52, promulgated by the Federal Reserve Board, was… More >

Lessons we can draw from Raj Date’s September 15 “Lessons Learned” speech

By Christopher J. Willis on September 23rd, 2011 Posted in Credit Cards, Mortgages

On September 15, 2011, Raj Date delivered a speech in Philadelphia entitled “Lessons Learned From the Financial Crisis: the Need for the CFPB.” Although the speech was, in some part, an effort to validate the need for the CFPB in the first place, Mr. Date’s remarks present interesting clues about the CFPB’s early priorities with… More >

What about technophobes?

By Alan S. Kaplinsky on September 2nd, 2011 Posted in Credit Cards

As we previously reported, the CFPB has installed on the home page of its Web site a consumer-friendly portal for submitting complaints against credit card issuers. Credit card issuers gain access to those complaints online and are required to respond within 10 days. Although I’ve been critical of a few inappropriate questions asked of cardholders,… More >