Credit card issuers face limits on fees and greater disclosure requirements as CFPB pledges more scrutiny after a 2009 law that revamped regulation of the business.
Bully tactics used to scare or coerce buyers.
October 2, 2013, Bloomberg News –
The Credit Card Accountability Responsibility and Disclosure Act of 2009 (“The Card Act”), limited lenders’ ability to raise interest rates, curbed late fees and forced lenders to seek customers’ approval to apply over-limit fees. Credit card issuers may face new limits on fees and greater disclosure requirements as Consumer Financial Protection Bureau pledges more scrutiny after a 2009 law that revamped regulation of the business.
The law saved consumers a total of $4 billion in 2012 by cracking down on how late fees and over-limit penalties are assessed.
Think about the information you are giving this stranger: all your financial information, your children’s names, bank accounts and your social security number. You do this without the slightest guarantee that the information will be kept safe.
“The CARD Act brought better consumer protections and fairness to the marketplace, but we found there is more work to be done,” CFPB Director Richard Cordray said. According to Cordray, the Bureau is now focusing on whether certain cards impose undue fees, and whether issuers adequately disclose terms and conditions. In his remarks, Cordray said the law saved consumers a total of $4 billion in 2012 by cracking down on how late fees and over-limit penalties are assessed. The total cost of credit on the cards, which includes all fees and finance charges, declined by two percentage points.
Read more about credit card companies facing scrutiny.
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Note from Diane. Do I believe we should all pay our debts? Of course!! Do I know that banks are taking advantage of folks who do not understand the cost of borrowing money or using credit? Absolutely, I have seen this for years!! Meanwhile we can all make a difference by teaching our children and ourselves how to use credit wisely.
Do I believe that the U.S. Consumer Financial Protection Bureau will really make a difference? Time has proved that they are the only government body really fighting for the consumer.