CFPB questions CEOs on credit card payment reporting

Federal Issues CFPB Consumer Finance Credit Report Credit Cards Credit Furnishing Information Furnisher

On May 25, the CFPB announced that it sent letters to the CEOs of the nation’s largest credit card companies asking them to explain how they furnish data to credit reporting agencies regarding the exact monthly payment amounts made by borrowers. The letters noted that in 2020, the Bureau released a consumer credit trends report on the prevalence of actual payment information in consumer credit reporting, concluding that actual payment furnishing for installment loan products had increased steadily between 2012 and 2020 while actual payment furnishing for credit card and retail revolving accounts had declined significantly (covered previously by InfoBytes here). The Bureau stated in the letters that, based on “easily accessible credit report information,” the CFPB understands that the addressed companies do not currently “regularly or consistently” report actual payment amount information to the nationwide credit reporting agencies. The Bureau asserted, that without this information, lenders may have more difficulty pricing credit and offering consumers “the best valued credit offers and loans for their money.” Additionally, the letter stated that, “[c]onsumers reasonably expect that they will receive competitively priced credit based on their ability to manage and repay their credit obligations, but this is impaired if actual payment amount information is being suppressed by major credit card companies.” The letters present a series of questions that ask the CEOs to explain their companies’ credit card data furnishing practices, which include, among other things, if there are any “material barriers that would prevent including the actual payment field in the account information your company already furnishes,” and if there are “plans to start furnishing actual payment amount information.” The Bureau noted the letter does not serve as a supervisory request, and answering these questions is not mandatory, but submission of answers is due in writing within thirty days of the receipt of this letter.