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Fed Criticized Over 'Inadequate Standards' for Credit Card Disclosure Rules

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CardHub.com 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).

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As Dodd-Frank's impact continues to be felt far beyond banks' compliance departments, American Banker is your eyes and ears. In addition to our award-winning coverage, we now also scour a range of resources to aggregate even more of the news you need on this vital topic.
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