The CFPB announced earlier this week that it is seeking public comment on the impact of the 2009 Credit Card Accountability Responsibility and Disclosure Act on consumers and the credit card industry.
“The CARD Act made major changes in the credit card marketplace in order to better protect consumers,” Richard Cordray, the director of the CFPB, said. “With [Wednesday]’s inquiry, the bureau is seeking to understand how the credit card market is working in practice and how the CARD Act changes have affected consumers and credit card issuers.”
The CARD Act was designed to enhance transparency in the credit card market. The CFPB held a conference in February 2011 to assess the impact of the legislation on the marketplace a year after many of the law’s rules took effect.
Among the findings discussed in the conference, the CARD Act has worked to limit the practice of interest rate increases on cardholder accounts. Before the law took effect, credit card companies could raise cardholders’ interest rates with little or no advance notice.
The conference also found that the CARD Act has helped to reduce consumer late fees and has almost eliminated overlimit fees charged by credit card issuers.
Additionally, the CARD Act mandates that the CFPB review the consumer credit market. The CFPB is requesting comment on the terms of credit card agreements and practices of issuers, the effectiveness of protections against unfair or deceptive practices, changes in the cost and availability of consumer credit and the use of risk-based pricing.