82 FR 13313 - Request for Information Regarding Consumer Credit Card Market
BUREAU OF CONSUMER FINANCIAL PROTECTION Federal Register Volume 82, Issue 46 (March 10, 2017)
Federal Register Volume 82, Issue 46 (March 10, 2017)
| Page Range | 13313-13315 | |
| FR Document | 2017-04797 |
[Federal Register Volume 82, Number 46 (Friday, March 10, 2017)] [Notices] [Pages 13313-13315] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-04797] ======================================================================= ----------------------------------------------------------------------- BUREAU OF CONSUMER FINANCIAL PROTECTION [Docket No. CFPB-2017-0006] Request for Information Regarding Consumer Credit Card Market AGENCY: Bureau of Consumer Financial Protection. ACTION: Notice and request for information. ----------------------------------------------------------------------- SUMMARY: The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act or Act) requires the Bureau of Consumer Financial Protection (Bureau or CFPB) to conduct a review (Review) of the consumer credit card market, within the limits of its existing resources available for reporting purposes. In connection with conducting that Review, and in accordance with the Act, the Bureau is soliciting information from the public about a number of aspects of the consumer credit card market as described further below. DATES: Comments must be submitted on or before June 8, 2017 to be assured of consideration. ADDRESSES: You may submit responsive information and other comments, identified by the document title and Docket No. CFPB-2017-0006, by any of the following methods:Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Email: FederalRegister[email protected]. Include the document title and Docket No. CFPB-2017- 0006 in the subject line of the message. Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552. Hand Delivery/Courier: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1275 First Street NE., Washington, DC 20002. Instructions: All submissions should include the agency name and docket number for this proposal. Because paper mail in the Washington, DC area and at the Bureau is subject to delay, commenters are encouraged to submit comments electronically. In general, all comments received will be posted without change to http://www.regulations.gov. In addition, comments will be available for public inspection and copying at 1275 First Street NE., Washington, DC 20002, on official business days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect the documents by telephoning (202) 435-7275. All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Sensitive personal information, such as account numbers or Social Security numbers, should not be included. Comments generally will not be edited to remove any identifying or contact information. FOR FURTHER INFORMATION CONTACT: For general inquiries, submission process questions, or any additional information, please contact Wei Zhang, Credit Card Program Manager, Division of Research, Markets, and Regulations, Consumer Financial Protection Bureau, at (202) 435-7700, or [email protected]. Authority: 15 U.S.C. 1616(a), (b). SUPPLEMENTARY INFORMATION: Section 502(a) of the CARD Act \1\ requires the Bureau to conduct a review, within the limits of its existing resources available for reporting purposes, of the consumer credit card market every two years. To inform that review, section 502(b) \2\ instructs the Bureau to seek public comment. --------------------------------------------------------------------------- \1\ See 15 U.S.C. 1616(a). \2\ See 15 U.S.C. 1616(b). --------------------------------------------------------------------------- The Bureau's first such review was published in October, 2013; the Bureau's second such review was published in December, 2015.\3\ To inform the Bureau's next review, the Bureau hereby invites members of the public, including consumers, credit card issuers, industry analysts, consumer advocates, and other interested persons to submit information and other comments relevant to the issues expressly identified in section 2 below, as well as any information they believe is relevant to a review of the credit card market. --------------------------------------------------------------------------- \3\ CARD Act Report, available at, http://files.consumerfinance.gov/f/201309_cfpb_card-act-report.pdf; The Consumer Credit Card Market, available at http://files.consumerfinance.gov/f/201512_cfpb_report-the-consumer-credit-card-market.pdf. --------------------------------------------------------------------------- 1. Background: The CARD Act The CARD Act was signed into law in May 2009.\4\ Passage of the Act was expressly intended to ``establish fair and transparent practices related to the extension of credit'' in the credit card market.\5\ To achieve these agreed-upon purposes, the Act changed the requirements applicable to credit card pricing in a number of significant respects including direct limits on a number of pricing practices that Congress deemed unfair or unclear to consumers. --------------------------------------------------------------------------- \4\ The CARD Act's provisions took effect in three stages: August 2009, February 2010, and October 2011. \5\ Public Law 111-24, 123 Stat. 1734 (2009). --------------------------------------------------------------------------- 2. Issues on Which the Bureau Seeks Public Comment for Its Review In connection with its pending Review, the Bureau seeks information from members of the public about how the credit card market is functioning. The Bureau seeks comments in two primary areas. First, the Bureau seeks comments on the experiences of consumers in the credit card market and on the overall health of the credit card market, including but not limited to those questions explicitly outlined in section 502(a) and in (a) through (d) below. Second, the Bureau seeks comments on eight areas of further interest, some but not all of which were discussed in the previous Review, published October 2013, delineated in (e) through (m) below. The Bureau wants to be alerted to and understand the information that consumers, credit card issuers, consumer groups, and others believe is most relevant to the Bureau's review of the credit card market, so this list of subjects should not be viewed as exhaustive. Commenters are encouraged to address any other aspects of the consumer credit card market that they consider would be of interest or concern to the Bureau. Please feel free to comment generally and/or respond to any or all of the questions below but please be sure to indicate in your comments on which topic areas or questions you are commenting: (a) The Terms of Credit Card Agreements and the Practices of Credit Card Issuers How have the substantive terms and conditions of credit card agreements or the length and complexity of such agreements changed over the past two years? How have issuers changed their pricing, marketing, underwriting, or other practices? (b) The Effectiveness of Disclosure of Terms, Fees, and Other Expenses of Credit Card Plans How effective are current disclosures of rates, fees, and other cost terms of [[Page 13314]] credit card accounts in conveying to consumers the costs of credit card plans? What further improvements in disclosure, if any, would benefit consumer cardholders at this point, and what costs would be incurred in providing such disclosures? (c) The Adequacy of Protections Against Unfair or Deceptive Acts or Practices or Unlawful Discrimination Relating to Credit Card Plans Do unfair, deceptive, or abusive acts and practices, or unlawful discrimination, still exist in the credit card market, and if so, in what form and with what frequency and effect? How might any such conduct be prevented and at what cost? (d) The Cost and Availability of Consumer Credit Cards, the Use of Risk-Based Pricing for Consumer Credit Cards, and Consumer Credit Card Product Innovation How have the cost and availability of consumer credit cards (including with respect to non-prime borrowers), the use of risk-based pricing for consumer credit cards, and consumer credit card product innovation changed since the Bureau reported on the credit card market in 2015? What has driven those changes--or, if there has been little change, the stability in those metrics? How are consumers with lower credit scores faring in the market? Has the impact of the CARD Act on these factors changed over the past two years? (e) Deferred Interest Products The Bureau's prior Review found that deferred interest products, while popular, can pose risks to consumers. How have market trends and issuer practices evolved since the Bureau's prior Review? What areas of risk still remain for consumers? What, if anything, should be done to address these risks? (f) Subprime Specialist Products The Bureau's prior Review examined the practices and metrics of certain ``subprime specialist'' issuers who provide cards to millions of consumers with lower credit scores. These issuers offer products to consumers distinguished by their high cost and their reliance on fees, rather than finance charges, relative to mass market issuers. How does the consumer experience of using these cards compare to the experience of consumers with similar credit profiles when using mass market credit cards? (g) Third-Party Comparison Sites Third party comparison sites are Web sites that provide information to consumers about different credit card products in order to facilitate the selection of a product. The Bureau has received indications that some such sites generate significant revenue from issuer payments made in exchange for approved applications, and that in many cases contracts between sites and issuers can influence or explicitly determine which (and how) products and choices are presented to consumers. To what degree do consumers understand the benefits and risks of using third party comparison sites? To what degree do existing standards, practices, and disclosures protect consumers from unfair, deceptive, and abusive acts and practices? Where, if anywhere, do opportunities for improvement exist, and how would any such improvements most appropriately be realized? (h) Innovation The Bureau's prior Review noted two major trends in financial innovation which are poised to substantially impact the credit card market. The first was advancements and evolutions in payment security and form factor, including both the widespread adoption of EMV standards and the possibility for wider adoption of mobile payments. The second was the trend toward new consumer lending models potentially competing with credit cards, both indirectly by being marketed as a tool for debt consolidation and more directly at point-of-sale. To what degree, have either of these trends advanced in ways both expected and unexpected over the past two years? Which of these trends appear likely to have the greatest impact on the consumer credit card market in the foreseeable future? What are the benefits and risks to consumers posed by these trends? What other innovations are impacting, or are likely to impact, consumers in the credit card marketplace? (i) Secured Credit Cards The Bureau believes that secured credit cards potentially offer consumers with limited or damaged credit history a beneficial way to both access credit and build or rebuild a positive credit record. The Bureau has taken note of some indications that secured card originations have increased and that new entrants to the market signal increasing issuer interest in offering this potentially valuable product to consumers. What is the current state of the secured credit card market, and what evidence is there to support indications of positive consumer outcomes? What obstacles, including regulatory obstacles or obstacles with potential regulatory solutions, may prevent secured cards from reaching their potential in the marketplace? What risks should consumers be aware of when choosing a secured card? (j) Online and Mobile Account Servicing The Bureau's prior Review found that large and increasing numbers of consumers are enrolling in issuers' online and mobile account servicing platforms. That Review also found that many of those consumers have both opted out of receiving paper statements and appear to rarely access their statements online. These consumers therefore rarely encounter certain mandatory disclosures intended to encourage and enable positive outcomes for consumers who have not always had positive experiences with credit cards. To what extent are consumers who, for example, make only minimum payments, or have a higher propensity towards making payments late, not encountering these disclosures? What other potential benefits or risks does a broader shift towards digital account servicing pose to consumers? What other practices or potential innovations are issuers engaging in to accomplish the same goals as those disclosures? What obstacles, including but not limited to specific regulatory obstacles, inhibit issuers from further innovating in leveraging online and mobile account servicing platforms to improve consumers' experiences and outcomes using credit cards? (k) Rewards Products The Bureau's prior review found that rewards programs associated with credit cards are prevalent, popular, and can provide value to consumers. That same Review identified areas for concern regarding the impact of rewards on consumer choice and usage of credit cards, as well as disclosure practices and program structure. How have market trends and issuer practices evolved since the Bureau's prior review? What areas of risk still remain for consumers? What, if anything, should be done to address those? (l) Variable Interest Rates The Bureau's prior Review found that most credit cards now have variable interest rates. Those credit card rates will rise when background interest rates increase. To what extent are consumers aware that their credit card borrowing costs will increase on funds already borrowed when market rates increase? [[Page 13315]] What common practices are issuers using to inform consumers of such rate increases? What practices, if any, should issuers adopt to help consumers understand the implications of card use in a rising interest rate environment? (m) Debt Collection The Bureau's prior Review examined the policies and practices of consumer credit card issuers' collections and debt sales operations. What, if any, changes have been made in such policies and practices since the last Review? If they have changed, what drove the applicable changes? What associated market metrics have changed as a result, and how did such changes occur? Have market metrics changed in other significant ways, and if so, how and why? Dated: March 6, 2017. Leandra English, Chief of Staff, Bureau of Consumer Financial Protection. [FR Doc. 2017-04797 Filed 3-9-17; 8:45 am] BILLING CODE 4810-AM-P
![Federal Register / Vol. 82, No. 46 / Friday, March 10, 2017 / Notices 13313
Mandatory Source(s) of Supply: Peckham comments received will be posted expressly intended to ‘‘establish fair and
Vocational Industries, Inc., Lansing, MI without change to http:// transparent practices related to the
Contracting Activity: W40M Northern Region www.regulations.gov. In addition, extension of credit’’ in the credit card
Contract Ofc comments will be available for public market.5 To achieve these agreed-upon
Amy B. Jensen, inspection and copying at 1275 First purposes, the Act changed the
Director, Business Operations. Street NE., Washington, DC 20002, on requirements applicable to credit card
[FR Doc. 2017–04763 Filed 3–9–17; 8:45 am]
official business days between the hours pricing in a number of significant
of 10 a.m. and 5 p.m. Eastern Time. You respects including direct limits on a
BILLING CODE 6353–01–P
can make an appointment to inspect the number of pricing practices that
documents by telephoning (202) 435– Congress deemed unfair or unclear to
7275. consumers.
BUREAU OF CONSUMER FINANCIAL All comments, including attachments
PROTECTION and other supporting materials, will 2. Issues on Which the Bureau Seeks
become part of the public record and Public Comment for Its Review
[Docket No. CFPB–2017–0006]
subject to public disclosure. Sensitive In connection with its pending
Request for Information Regarding personal information, such as account Review, the Bureau seeks information
Consumer Credit Card Market numbers or Social Security numbers, from members of the public about how
should not be included. Comments the credit card market is functioning.
AGENCY: Bureau of Consumer Financial
generally will not be edited to remove The Bureau seeks comments in two
Protection.
any identifying or contact information. primary areas. First, the Bureau seeks
ACTION: Notice and request for comments on the experiences of
FOR FURTHER INFORMATION CONTACT: For
information. general inquiries, submission process consumers in the credit card market and
SUMMARY: The Credit Card questions, or any additional on the overall health of the credit card
Accountability Responsibility and information, please contact Wei Zhang, market, including but not limited to
Disclosure Act of 2009 (CARD Act or Credit Card Program Manager, Division those questions explicitly outlined in
Act) requires the Bureau of Consumer of Research, Markets, and Regulations, section 502(a) and in (a) through (d)
Financial Protection (Bureau or CFPB) Consumer Financial Protection Bureau, below. Second, the Bureau seeks
to conduct a review (Review) of the at (202) 435–7700, or wei.zhang@ comments on eight areas of further
consumer credit card market, within the cfpb.gov. interest, some but not all of which were
limits of its existing resources available Authority: 15 U.S.C. 1616(a), (b). discussed in the previous Review,
for reporting purposes. In connection SUPPLEMENTARY INFORMATION: Section published October 2013, delineated in
with conducting that Review, and in 502(a) of the CARD Act 1 requires the (e) through (m) below.
accordance with the Act, the Bureau is The Bureau wants to be alerted to and
Bureau to conduct a review, within the
soliciting information from the public understand the information that
limits of its existing resources available
about a number of aspects of the consumers, credit card issuers,
for reporting purposes, of the consumer
consumer credit card market as consumer groups, and others believe is
credit card market every two years. To
described further below. most relevant to the Bureau’s review of
inform that review, section 502(b) 2
the credit card market, so this list of
DATES: Comments must be submitted on instructs the Bureau to seek public
subjects should not be viewed as
or before June 8, 2017 to be assured of comment.
The Bureau’s first such review was exhaustive. Commenters are encouraged
consideration.
published in October, 2013; the to address any other aspects of the
ADDRESSES: You may submit responsive consumer credit card market that they
information and other comments, Bureau’s second such review was
published in December, 2015.3 To consider would be of interest or concern
identified by the document title and to the Bureau.
Docket No. CFPB–2017–0006, by any of inform the Bureau’s next review, the
Please feel free to comment generally
the following methods: Bureau hereby invites members of the
and/or respond to any or all of the
• Federal eRulemaking Portal: http:// public, including consumers, credit card
questions below but please be sure to
www.regulations.gov. Follow the issuers, industry analysts, consumer
indicate in your comments on which
instructions for submitting comments. advocates, and other interested persons
topic areas or questions you are
• Email: FederalRegisterComments@ to submit information and other
commenting:
cfpb.gov. Include the document title and comments relevant to the issues
Docket No. CFPB–2017- 0006 in the expressly identified in section 2 below, (a) The Terms of Credit Card
subject line of the message. as well as any information they believe Agreements and the Practices of Credit
• Mail: Monica Jackson, Office of the is relevant to a review of the credit card Card Issuers
Executive Secretary, Consumer market. How have the substantive terms and
Financial Protection Bureau, 1700 G 1. Background: The CARD Act conditions of credit card agreements or
Street NW., Washington, DC 20552. the length and complexity of such
• Hand Delivery/Courier: Monica The CARD Act was signed into law in
agreements changed over the past two
Jackson, Office of the Executive May 2009.4 Passage of the Act was
years? How have issuers changed their
Secretary, Consumer Financial pricing, marketing, underwriting, or
1 See 15 U.S.C. 1616(a).
Protection Bureau, 1275 First Street NE., 2 See other practices?
15 U.S.C. 1616(b).
sradovich on DSK3GMQ082PROD with NOTICES
Washington, DC 20002. 3 CARD Act Report, available at, http://
Instructions: All submissions should (b) The Effectiveness of Disclosure of
files.consumerfinance.gov/f/201309_cfpb_card-act-
include the agency name and docket report.pdf; The Consumer Credit Card Market,
Terms, Fees, and Other Expenses of
number for this proposal. Because paper available at http://files.consumerfinance.gov/f/ Credit Card Plans
mail in the Washington, DC area and at 201512_cfpb_report-the-consumer-credit-card-
market.pdf.
How effective are current disclosures
the Bureau is subject to delay, 4 The CARD Act’s provisions took effect in three of rates, fees, and other cost terms of
commenters are encouraged to submit stages: August 2009, February 2010, and October
comments electronically. In general, all 2011. 5 Public Law 111–24, 123 Stat. 1734 (2009).
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![Federal Register / Vol. 82, No. 46 / Friday, March 10, 2017 / Notices 13315
What common practices are issuers • Federal eRulemaking Portal: http:// Affected Public: Business or other for
using to inform consumers of such rate www.regulations.gov. Follow the profit.
increases? What practices, if any, should instructions for submitting comments. Annual Burden Hours: 37,948.67.
issuers adopt to help consumers • Mail: Department of Defense, Office Number of Respondents: 3,211.
understand the implications of card use of the Deputy Chief Management Responses per Respondent: 10.13.
in a rising interest rate environment? Officer, Directorate for Oversight and Annual Responses: 32,527.43.
Compliance, Regulatory and Advisory Average Burden per Response: 70
(m) Debt Collection
Committee Division, 4800 Mark Center minutes.
The Bureau’s prior Review examined Drive, Mailbox #24, Suite 08D09B, Frequency: On occasion.
the policies and practices of consumer Alexandria, VA 22350–1700. Respondents will already be a cleared
credit card issuers’ collections and debt Instructions: All submissions received contractor facility in the National
sales operations. What, if any, changes must include the agency name, docket Industrial Security Program under the
have been made in such policies and number and title for this Federal security cognizance of DSS on behalf of
practices since the last Review? If they Register document. The general policy Department of Defense (DoD). Such
have changed, what drove the for comments and other submissions NISP contractors must provide contract
applicable changes? What associated from members of the public is to make security classification specifications
market metrics have changed as a result, these submissions available for public with any classified subcontracts that
and how did such changes occur? Have viewing on the Internet at http:// they award to comply with the
market metrics changed in other www.regulations.gov as they are requirements of the National Industrial
significant ways, and if so, how and received without change, including any Security Program Operating Manual,
why? personal identifiers or contact DoD 5220.22–M. For those contractors
Dated: March 6, 2017. information. under DoD security cognizance, that
Leandra English, Any associated form(s) for this means using the DD Form 254, if
collection may be located within this awarding any contracts that require
Chief of Staff, Bureau of Consumer Financial
Protection. same electronic docket and downloaded access to classified information for
for review/testing. Follow the contract performance. If the form is not
[FR Doc. 2017–04797 Filed 3–9–17; 8:45 am]
instructions at http:// included with the classified contract,
BILLING CODE 4810–AM–P
www.regulations.gov for submitting DSS, on behalf of DoD and those non-
comments. Please submit comments on DoD agencies with which DoD has
any given form identified by docket agreements for industrial security
DEPARTMENT OF DEFENSE number, form number, and title. services, is unable to conduct effective
FOR FURTHER INFORMATION CONTACT: To oversight to determine that classified
Office of the Secretary request more information on this information is being protected according
[Docket ID DOD–2015–OS–0129] proposed information collection or to to contract or subcontract requirements.
obtain a copy of the proposal and Dated: March 7, 2017.
Proposed Collection; Comment associated collection instruments, Aaron Siegel,
Request please write to the Office of the Under
Alternate OSD Federal Register Liaison
Secretary of Defense for Intelligence, Officer, Department of Defense.
AGENCY: Office of the Under Secretary of Office of the Director for Defense
Defense for Intelligence, DoD. [FR Doc. 2017–04775 Filed 3–9–17; 8:45 am]
Intelligence (Intelligence & Security),
BILLING CODE 5001–06–P
ACTION: Notice. Security Policy and Oversight Division
(SPOD), 5000 Defense Pentagon, Room
SUMMARY: In compliance with the 2B718, ATTN: Valerie Heil, Arlington,
Paperwork Reduction Act of 1995, the VA 20301–5000, or call ODDI(I&S)
Office of the Under Secretary of Defense DEPARTMENT OF EDUCATION
SPOD at 703–692–3754.
for Intelligence announces a proposed
SUPPLEMENTARY INFORMATION: Applications for New Awards; Gaining
public information collection and seeks Title; Associated Form; and OMB
public comment on the provisions Early Awareness and Readiness for
Number: Department of Defense Undergraduate Programs (Partnership
thereof. Comments are invited on: Contract Security Classification
Whether the proposed collection of Grants)
Specification, DD Form 254; OMB
information is necessary for the proper Control Number 0704–XXXX. AGENCY: Office of Postsecondary
performance of the functions of the Needs and Uses: The information Education, Department of Education.
agency, including whether the collection requirement, authorized by ACTION: Notice.
information shall have practical utility; the DoD 5220.22–R, ‘‘DoD Industrial
the accuracy of the agency’s estimate of Security Regulation,’’ and the Federal Overview Information: Gaining Early
the burden of the proposed information Acquisition Regulation, is necessary to Awareness and Readiness for
collection; ways to enhance the quality, provide security classification guidance Undergraduate Programs (GEAR UP);
utility, and clarity of the information to to a U.S. contractor and any Notice inviting applications for new
be collected; and ways to minimize the subcontractors in connection with a awards for fiscal year (FY) 2017.
burden of the information collection on contract requiring access to classified Catalog of Federal Domestic
respondents, including through the use information (hereinafter referred to as a Assistance (CFDA) Number: 84.334A.
sradovich on DSK3GMQ082PROD with NOTICES
of automated collection techniques or ‘‘classified contract’’). The DD Form DATES:
other forms of information technology. 254, with its attachments, supplements, Applications Available: March 10,
DATES: Consideration will be given to all and incorporated references, is the 2017.
comments received by May 9, 2017. principal authorized means for Deadline for Transmittal of
ADDRESSES: You may submit comments, providing security classification Applications: April 19, 2017.
identified by docket number and title, guidance to a U.S. contractor in Deadline for Intergovernmental
by any of the following methods: connection with a classified contract. Review: June 19, 2017.
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Document Created: 2018-02-01 14:52:46
Document Modified: 2018-02-01 14:52:46
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice and request for information. | |
| Dates | Comments must be submitted on or before June 8, 2017 to be assured of consideration. | |
| Contact | For general inquiries, submission process questions, or any additional information, please contact Wei Zhang, Credit Card Program Manager, Division of Research, Markets, and Regulations, Consumer Financial Protection Bureau, at (202) 435-7700, or [email protected] | |
| FR Citation | 82 FR 13313 |
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