Title: Developments in Credit Card Practices and Related Actions by the OCC to Protect Consumers
Abstract: The credit card industry has been the source of many developments and innovations in consumer financial services over the past several years, in response to increased competition for new customers and new sources of revenue.1 Credit card issuers have introduced new products, adopted new marketing strategies, and made changes in account management practices in reaction to these market forces. In some cases, product and marketing innovations have been designed to expand credit access by individuals who traditionally have had limited access to credit and other financial services. Other developments, however, have not been so positive. Problems arise when credit card product, marketing, and servicing innovations carry costs, risks, and limitations that are detrimental to, and are not adequately disclosed to, consumers. Particular concerns have been identified in connection with: (i) the growth in secured credit card products; (ii) the use of credit card advertisements involving exceptionally low, teaser interest rates; (iii) the use of credit card advertisements involving exceptionally high, teaser credit limits; and (iv) changes in the use and scope of default interest rates. Because these developments generally represent fairly recent changes in the marketplace, however, the system of consumer protection rules developed under the Truth in Lending Act (TILA)2 and other regulatory regimes has not yet addressed the consumer
Publication Year: 2016
Publication Date: 2016-01-01
Language: en
Type: article
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