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.
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