CFPB Releases Credit Card Study/Holds Public Hearing/Fair Contracts Provides Testimony
CFPB Releases Credit Card Study/Holds Public Hearing/
Fair Contracts Provides Testimony
On October 2, 2013, the Consumer Financial Protection Bureau released it’s first biennial report on the effects of the Credit Card Accountability and Disclosure Act of 2009 or the “CARD Act”. In a public field hearing in downtown Chicago, Director Richard Cordray summarized the findings, concluding that the regulation has benefited consumers by significantly enhancing transparency and reducing back- end and hidden fees, though interest rates have risen. The report also identifies six areas in need of more work.
Fair Contracts gave public testimony that there should be a seventh area to address, namely the numerous nonfinancial terms in credit card agreements that can be harmful to consumers, including forced, binding arbitration, choice of law provisions, jury trial waivers, and one-way modifications that let the card issuers change the terms on the consumer. The video of the hearing can be viewed here.