CFPB warns credit card issuers to avoid deceptive promotional APR offers

cfpbThe CFPB warned credit card companies on Wednesday to avoid deceptive marketing practices, such as marketing promotional offers of zero or reduced interest rates without disclosing the true costs of the offer.

In the new bulletin, the CFPB said luring consumers with offers that cause them to incur surprise charges is illegal and that credit card companies have a responsibility to inform consumers of the true costs of the promotion.

“Today, we are putting credit card companies on notice that we expect them to clearly disclose how these promotional offers apply to consumers so that they can make informed choices about their credit card use,” CFPB Director Richard Cordray said.

The CFPB said it expects that issuers integrate measures to prevent violations of consumer financial laws and to implement controls to ensure promotional interest rate offers are marketed in a way that limits the risk of violations and consumer harm.

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