Dodd-Frank Reform Watch
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Fed Criticized Over 'Inadequate Standards' for Credit Card Disclosure Rules

Google+ blasted the Federal Reserve Board after releasing a report evaluating what credit card issuers are required to tell their customers about possible interest rate hikes.

The web site, which allows consumers to compare credit card offers, claimed the Fed may have been meeting disclosure standards regarding the re-pricing of credit, but they were inadequate. The report criticized "the Fed for omitting key consumer protections in its guidelines, such as what can trigger a rate increase for existing balances versus new transactions," writes American Banker's Kevin Wack.

The Fed yielded all authority over credit-card disclosure rules to the Consumer Financial Protection Bureau as a result of the Dodd-Frank Act. Last December, the CFPB released its own sample disclosure form which received a much more positive review from CardHub.

For the full piece see "Fed Blasted Over Credit Card Consumer Protection Rules" (may require subscription).




Legal Bills Pile Up at Banks
Each quarter banks report their worst-case estimates of costs tied to lawsuits and regulatory probes. Some banks reported lower figures in recent quarters, but others are braced to spend more to resolve legacy issues. New legal threats loom, too.

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