The CFPB’s just-released annual report found that fewer new college accounts are being opened, while the number of college card issuers has increased from 18 to 23 in recent years.
New research by the U.S. Consumer Financial Protection Bureau finds that arbitration clauses are commonly used by large banks in credit card and checking account agreements, but that roughly nine out of 10 dispute-resolution options prevent consumers from participating in class actions.
Consumers who signed up for a credit card to pay for dental, cosmetic, vision, or veterinary care through CareCredit, a division of General Electric, were provided little warning or explanations about “deferred interest” penalties and fees tied to these loans, the Consumer Financial Protection Bureau said Tuesday.
The U.S. Consumer Financial Protection Bureau is looking into whether credit card issuers are misleading customers when they sign up for these programs. The result could be new rules to ensure clarity and transparency.
Credit card reform that took effect more than three years ago has helped reduce borrowing costs for U.S. consumers, especially those with the lowest FICO scores, according to a new report.
The Consumer Financial Protection Bureau now confirms that the cost of credit cards, including the virtual end to over-the-limit fees, has been reduced by the reform. For example, the average late fee has decreased by $6.
The study found that customer awareness of earning and redeeming rewards with their credit card has declined year over year, with 59 percent of customers saying they “completely” understand how to earn rewards in 2013, compared with 66 percent in 2012.
The senators introduced — or reintroduced — the Empowering States’ Rights to Protect Consumers Act, a bill that would effectively restore the ability of states to set limits on credit cards and other consumer loan interest rates.
Imagine if you got paid by your employer through a debit card that charges you a fee to withdraw money from an ATM or every time you check your balance. A single mother from northeastern Pennsylvania alleges just that in a lawsuit filed against a McDonald’s franchise.
The CARD Act’s consumer protections took effect three years ago, but it covers general consumer credit cards. The reform does not apply to small business accounts. That is unfortunate.