CFPB Finalizes Rule Aimed At Improving Credit Card Agreement Submission Process

cfpb

CFPB Finalizes Rule Aimed At Improving Credit Card Agreement Submission Process
– Bureau to Temporarily Suspend Card Issuers’ Obligation to Submit Credit Card Agreements

FOR IMMEDIATE RELEASE: April 15, 2015

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) issued a final rule aimed at improving the way that companies submit consumer credit card agreements to the Bureau. The rule temporarily suspends a requirement that each quarter certain credit card issuers send their agreements to the Bureau, which publishes them in a public database on its website. Other requirements, including card issuers’ obligations to post these agreements on their own publicly available websites, will remain unaffected by today’s rule.

“Today we are finalizing a rule that will help further the Bureau’s work to improve the public credit card agreements database,” said CFPB Director Richard Cordray. “Updating and streamlining the process for how credit card companies submit their agreements to us can benefit industry and our agency. Improving this process can also enable consumers and others to access the data faster and in a more useable form.”

In 2009, Congress passed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, which requires that credit card issuers post consumer credit card agreements on their websites as well as submit those agreements to the CFPB. These agreements feature general terms and conditions, pricing, and fee information. The CFPB maintains a public database on its website of these credit card agreements from nearly 450 card issuers. Federal regulations require that companies submit their agreements to the CFPB on a quarterly basis.

The final rule issued by the Bureau today suspends for one year credit card issuers’ obligations to submit their credit card agreements to the Bureau. During this time, the Bureau will work to develop a more streamlined and automated electronic submission system. The Bureau intends for its new submission system to be easier for issuers to use than the current manual submission system. The CFPB also intends for the new system to enable faster posting of new and revised agreements on the Bureau’s website. In designing the new system, the Bureau also intends to explore improved reporting formats for the posted information.

Under the rule, credit card issuers will not be required to submit agreements that would otherwise have been due to the Bureau by the first business day on or after April 30, July 31, and October 31 of 2015, and January 31, 2016. Credit card issuers must resume submitting credit card agreements on a quarterly basis to the Bureau starting on April 30, 2016.

During the temporary suspension period, the CFPB will collect consumer credit card agreements from the largest card issuers’ public websites and post the agreements to its online consumer credit card agreements database. This will help ensure that the database contains agreement terms that are currently offered to consumers by credit card issuers responsible for the substantial majority of existing and new credit cards in the U.S.

The rule is available here: http://files.consumerfinance.gov/f/201504_cfpb_final-rule_credit-card-collection-suspension.pdf

CONTACT: Office of Communications – Tel: (202) 435-7170

No Author Biography has been linked to this Article.

Related Articles

moran_cathy
October 30, 2022
Spending every dollar they make, and then some, is often how our Chapter 13 clients got into financial trouble. Yet Chapter 13, as practiced, validates the practice of continuing to spend 100% of each month’s income during the life of the plan. In doing so, we, as a society, squander the chance to use Chapter 13 to teach new budgeting...
Members
September 26, 2021
By Dynele Schinker-Kuharich, Chapter 13 Standing Trustee (Canton, OH) On Thursday, September 16, 2021, the bankruptcy community lost a good friend and esteemed colleague, Robert S. Thomas II. In an effort to pay tribute to Robert, who was loved and respected by so many, The NACTT Academy is privileged to share comments, thoughts, and tributes made by Robert’s bankruptcy colleagues....
April 19, 2020
By Cathy Moran, Esq. (Redwood City, CA) Mortgage forbearance for homeowners, shout the headlines. No need to make a house payment. Borrowers who can’t make this month’s mortgage payment were thrown a lifeline of sorts in the coronavirus rescue package. Only it’s probably not the help they think it is. And the lifeline may be far more fragile than they...
Members
M Joseph Photo 2-1-22
July 23, 2023
Social media and internet dating sites have given rise to romance and confidence schemes.  Catfishing and spear phishing are extensively used.  Catfishing is faking an identity on the internet. Spear phishing uses more sophisticated and direct messages to trick the victim. New AI programs make it easier to reach and victimize the targets. The fraudsters prey upon the elderly, widowed...
Members
August 18, 2019
Small business owners, self-employed people, and some wage earners should look into whether they should make estimated tax payments this year. Doing so can help them avoid an unexpected tax bill and possibly a penalty when they file next year. Everyone must pay tax as they earn income. Taxpayers who earn a paycheck usually have their employer withhold tax from...
Copy of Hildebrand-2016
June 18, 2023
The Ninth Circuit has now joined its sister Circuit in holding that the Bankruptcy Code does not permita Chapter 13 Trustee to retain the percentage fees collected on payments that a chapter 13 debtor made pre-confirmation in accordance with 26 U.S.C. §586 but, upon dismissal prior to confirmation of the plan, is obligated to return the fee to the debtor,...
Members
September 25, 2022
Just prior to a confirmation docket in September of 2006, a local creditor attorney asked me if I would be interested in coming to work at his firm. The chapter 13 trustee was in the room and could not help but overhear. After the docket that trustee asked me if I was looking for a job. I wasn’t . ....
September 12, 2021
By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction In re Taggart In 2019, the Supreme Court in In re Taggart1 ruled that the acts alleged in that case to be in violation of a discharge injunction did not empower the bankruptcy court to find the creditor in contempt. In so holding, the Court ostensibly attempted to strike...
Members
February 23, 2020
By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN) Introduction This series has focused on the four bankruptcy-related bills that were enacted during the 116th Congress and signed into law on August 23, 2019. One bill, the Small Business Reorganization Act of 2019 (SBRA), became effective February 19, 2020. It appears in its entirety in Appendix B to this...
Members
Angela scolforo
September 11, 2022
The Mississippi Bankruptcy Court in The Huntington National Bank vs. Ashley Mosby, case #21-11614, adversary case #21-1028, on September 1, 2022, denied the bank’s request to declare a debt non-dischargeable because the bank did not rely upon the debtor’s false statement. In this case the Debtor purchased a 2020 Dodge Challenger, financed by the bank, without disclosing she intended to...
Members

Looking to Become a Member?

ConsiderChapter13.org offers a forum to advance continuing education of consumer bankruptcy via access to insightful articles, informative webinars, and the latest industry news. Join now to benefit from expert resources and stay informed.

Webinars

These informative sessions are led by industry experts and cover a range of consumer bankruptcy topics.

Member Articles

Written by industry experts, these articles provide in-depth analysis and practical guidance on consumer bankruptcy topics.

Industry News

The Academy is the go-to source for the latest news and analysis in the Chapter 13 bankruptcy industry.

To get started, please let us know which of these best fits your current position: