Late last month, the CFPB published a Request for Information on two separate aspects of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act).
The Bureau first seeks input regarding how rules implemented by the CARD Act for the purpose of amending Regulation Z can affect small business, such as a card issuer. Such rules include prohibitions on extending credit without assessing the consumer’s ability to pay, restricting the amount of required fees that a card issuer can charge during the first year after an account is opened, restricting fees for over-the-limit transactions to once per billing cycle and restricting how payments in excess of the minimum payment may be allocated. The CFPB seeks comments specifically regarding the economic impact of these rules on small businesses to assess whether these rules are consistent with §610 of the Regulatory Flexibility Act.
The Bureau also seeks comments regarding the state of the consumer credit card market. Areas of interest to the Bureau include concerns regarding credit card pricing structure, credit availability within the existing market, and new developments involving the use of digital account servicing platforms and recently offered fixed payment features.
Comments can be submitted in response to this Request here until the comment period closes on October 27, 2020.