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Valerie Hletko Quoted in PaymentsCompliance Article, "Consumer Finance Watchdog To Increase Focus On U.S. Credit Card Market"

Valerie L. Hletko

Valerie Hletko was quoted in Mark Taylor's PaymentsCompliance article, "Consumer Finance Watchdog To Increase Focus On U.S. Credit Card Market," on January 13, 2016. 

Government enforcement expert Valerie Hletko of Buckley Sandler’s Washington, D.C. office said emerging priorities for the CFPB included underwriting, rewards, and deferred interest.

“We now have a second data point — what they choose to study is revealing of their agenda for supervision and enforcement,” she told PaymentsCompliance.

“There are a couple of big agenda items — in particular point of sale and manual underwriting."

“The bureau also appears concerned about the overall cost of credit to consumers even though they are satisfied that given the changes affected by the CARD Act that those costs have declined significantly.”

The issuing of rewards around credit is likely to become an increasingly competitive space as card companies face greater market pressures.

Hletko said the industry would be wise to ensure compliance on this is a priority.

“The CFPB has suggested that consumers are more likely to pick a card product based on the rewards program rather than the rates and fees, so it is a big issue,” she said.

“Transparency issues can be difficult when it comes to rewards because of the involvement of third parties."

“Issuers may not have control over aspects of the value proposition — forfeiture, redemption, the determinacy of a unit of value, and it puts them in a very difficult compliance position.”

Originally published in PaymentsCompliance; reprinted with permission.