While the CFPB believes the CARD Act addressed many problematic practices in the market, the bureau has further concerns. Among the concerns are practices such as deferred-interest promotions, subprime credit-card company offerings, unclear rewards programs, debt collection practices and lengthy and complex credit card agreements.
In response to comments that increased regulation could lead to constricted credit availability and higher costs to consumers, CFPB director Richard Cordray said:
Of course, we should and we will make sure that we are mindful of these concerns. We can draw up the greatest consumer protections ever devised, but if consumers cannot get access to credit, then there is nothing to protect. You cannot have responsible lending unless you have lending in the first place. But at the same time, we need to be wary of prophets of doom whose real agenda is to hamstring effective regulation in order to preserve predatory practices.
Read the report.