Newsroom

The CFPB Tuesday issued a request for information (RFI) related to the Credit Card Accountability Responsibility and Disclosure (CARD) Act. The RFI is part of the bureau's statutory requirement to review certain rules within 10 years of publication and their impact on small businesses.

NAFCU has flagged for the bureau that the CARD Act has added significantly to credit unions' compliance costs. The association argued that the law's disclosure requirements "have mandated that credit unions change the way they approach the credit card market and interact with members."

Specifically, the CFPB is seeking public input through the RFI on CARD Act rules' economic impact on small entities, as well as how the consumer credit card market is functioning. After reviewing comments, the bureau will determine whether rules should be amended, rescinded, or maintained as is.

The bureau last year collected and released information for its biennial report – required by the CARD Act – on the state of the credit card market for 2017-2018. The report found that credit cards constitute the largest consumer lending market (see other key findings).

Prior to the report, NAFCU advocated for more flexibility under CARD Act regulations to allow credit unions to properly serve their members and highlighted that credit unions, on average, offer lower interest rates on credit cards than banks.