CFPB examines credit card rates and fees

Federal Issues CFPB Consumer Finance Fees Credit Cards

On January 19, the CFPB released a blog on credit card interest and fees. The Bureau noted that credit card debt is rising, and that “from 2015 to 2019, the average assessed interest rate on credit cards increased by more than 20%.” The blog pointed out that the Bureau is examining ways to ensure that there is robust and fair competition in the credit card market. According to the blog, the Bureau “will focus on ensuring a more fair, transparent, and competitive credit card market” by (i) uncovering unfair, anticompetitive practices; (ii) making it easier for consumers to compare, switch, or refinance credit cards; and (iii) scrutinizing junk fees. The Bureau also noted that it is “looking to use a long-dormant authority to help spur better credit card shopping and switching by proposing rules that give consumers more control of their financial data,” and “considering options that will help Americans with credit cards escape high rates and lousy service.”