On September 3, 2014, the Consumer Financial Protection Bureau (“CFPB”) issued a bulletin to warn credit card issuers about marketing practices related to credit card promotional APR offers (“Bulletin”). The Bulletin warns credit card issuers that solicitations offering a promotional annual percentage rate (“APR”) on particular transactions—such as convenience checks, deferred interest purchases and balance transfers—may be considered deceptive and/or abusive acts or practices under Sections 1031 and 1036 of the Dodd-Frank Act.

Specifically, the CFPB states that it has “observed” that certain solicitations may be considered deceptive if they do not clearly and prominently convey that a consumer who accepts a promotional APR, and subsequently makes new purchases, will lose a grace period on the new purchases if the consumer does not pay the entire statement balance, including the amount subject to the promotional APR rate, by the payment due date. The Bulletin also warns that credit card issuers who fail to “adequately alert consumers [about] this relationship” may be at risk of engaging in “abusive conduct.”