CHICAGO (10/3/13)--"The [Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act)] brought better consumer protections and fairness to the marketplace, but we found there is more work to be done," Consumer Financial Protection Bureau Director Richard Cordray said during a Wednesday agency field hearing.
The field hearing followed the release of a CFPB report on the CARD Act's impact on credit markets. (See related story: CUNA's Dunn Outlines CARD Act Challenges For CUs at CFPB Event.)
The CARD Act was enacted in 2009 to prohibit and restrict a number of credit card practices.
While the bureau highlighted some improvements that have been made as a result of the CARD Act, the CFPB said it still has areas of concern, such as optional services that are sold by credit card companies to cardholders, application fees or other fees that are charged before an account is opened and deferred interest products.
Online disclosures, disclosures concerning rewards products, and grace period disclosures are also of interest. The CFPB said it will study some of these areas, and could take future action to address these issues.
According to the CFPB report:
The CFPB also reported that the percentage of young adults ages 18-20 that have at least one credit card account has dropped by half. However, overall availability is not an issue: There is still $2 trillion of unused credit for consumers with credit cards in the marketplace, the agency noted.