Credit Card Legislation News

Credit Card Legislation News

Republican officials on the House Oversight and Government Reform subcommittee recently grilled CFPB director Richard Cordray over what they called his agency's inability to improve lending conditions since the end of the recession, according to a report from the news site Politico.

The credit reporting industry is one that has remained largely unregulated by the federal government, but that will soon change thanks to a new initiative from the Consumer Financial Protection Bureau, the agency recently announced. In the past, only federal law enforcement agencies had oversight of credit reporting companies, which are privately owned, and there was no single entity in charge of writing rules for the industry.

The federal Consumer Financial Protection Bureau will launch the beta version of a database containing borrowers' complaints about their credit cards, with an eye toward expanding the service by the end of the year, according to a report from the Los Angeles Times. However, many experts within the financial industry say that such a move might actually be quite harmful because of the way the agency vets information.

Everything from credit cards and mortgages to student and auto financing now fall under the purview of the federal Consumer Financial Protection Bureau, and the agency is committed to continuing to increase protections for borrowers over the course of time, according to a report from USA Today. The CFPB's efforts have led to a number of appreciable and tangible benefits for consumers.

One provision of the Credit Card Accountability, Responsibility and Disclosure Act of 2009 states that consumers over the age of 21 applying for a new account must provide proof of independent income sufficient to cover the costs they might incur on their card, according to an editorial by American Bankers Association president and chief executive officer Frank Keating for the Huffington Post.

The federal Consumer Financial Protection Bureau has rolled out a number of significant rules for the lending industry, as well as some for businesses associated with it, but one of its top officials recently said that the ability for Americans to better understand their credit card agreements remains one of its foremost priorities, according to a report from Dow Jones Newswires.

Despite numerous provisions of the CARD Act designed to protect them from lenders' marketing tactics, it seems many college students have seen little change in receiving offers for new cards, according to a new study from Professor Jim Hawkins of the University of Houston Law Center.

Earlier this week, the federal consumer financial protection bureau announced that it would seek public comment on its proposed rule to limit all fees associated with a credit card account to be no more than a combined 25 percent of an account's initial credit limit, according to a report from the Associated Press. Currently, these caps apply only to fees charged in the first year the account exists, and one way in which some lenders are skirting the rules is by charging a "processing fee" before the account is open.

The case, a private suit between about 5 million businesses and Visa, MasterCard and 13 large banks, is related to the amount that companies pay for accepting a credit card purchase, and is slated to begin in September 2012, according to a report from CNBC. Analysts say that whatever happens, the credit card landscape could change considerably.

The federal Consumer Financial Protection Bureau is now seeking nominations for advisors on its government-mandated 16-person advisory board, which will advise and consult with top officials from the agency on a number of matters, according to a report from the Washington Post. The board will have at least 16 members, six of which must be nominated by the various Federal Reserve banks around the country. However, the final members of the board will be chosen by CFPB top executive Richard Cordray.