CFPB supervisory experience has observed that some card issuers do not adequately convey in their marketing materials that a consumer who accepts such a promotional offer will lose his grace period on new purchases if he does not pay the entire statement balance, including the total amount subject to the promotional APR, by the payment due date.
ABA SVP Nessa Feddis commented :
Providing clear and transparent disclosures so customers are fully informed is one of our industry’s top priorities. As the CFPB points out, federal regulations require — and banks ensure — that consumers receive four highlighted notices indicating they will lose the grace period on new purchases if they don’t pay their balance in full.
Read the bulletin.