Credit card regulation under scrutinyThe regulator has issued a Request for Information Regarding Credit Card Market (PDF), which invites members of the public, credit card companies, industry groups and consumer advocates to submit information and comments across a range of topics, including:
- How have credit card agreements changed?
- How have card companies' practices changed?
- Are the disclosure aspects of the CARD Act working?
- Are consumers now adequately protected against deceptive practices?
- How has regulation affected the cost and availability of credit?
- Has the Act damaged any card issuers' businesses?
- Are credit card companies still pricing their products according to the risk posed by individual consumers?
- Has the law either fostered or discouraged innovation in the industry?
Act working?Some likely impacts of the Credit CARD Act emerged during a Feb. 2011 CFPB conference. According to a recent press release issued by the watchdog's communications office, this found the law had done the following:
- Significantly reduced the practice among many credit card companies of hiking interest rates on existing customers.
- Slashed the late fees charged to consumers paying past due.
- Almost eliminated over-limit fees.