Excessive credit card requirements have the potential to divert credit union resources and attention away from meeting member needs, CUNA told the Consumer Financial Protection Bureau Thursday in a letter.
The letter was sent in response to a request for information from the bureau on aspects of the credit card market.
“The increased cost of compliance associated with CARD Act regulations, increased costs from technology and costs associated with data breaches has made it more expensive for credit unions and other issuers to operate card programs,” the letter reads. “We therefore urge the CFPB to provide credit unions with meaningful regulatory relief from provisions of the CARD Act for which it has appropriate authority and for which there are no clear protections provided to the consumer by the implementing regulations.”
More than 60% of credit unions offer credit union programs as a service to members. Credit union credit card interest rates have remained at an average of between 11% and 12% since March 2010, while bank interest rates have risen from more than 12% to nearly 16% in the same time period.
In the letter, CUNA also asked the bureau to “continue and look for ways in which to improve and simplify disclosures.”
CUNA also discussed issues such as the statutory interest rate cap for federal credit unions, the effect of data breaches on credit unions and credit unions’ role in credit card payment innovations.