Request for Information Regarding Credit Card Market, 75410-75412 [2012-30609]

Download as PDF 75410 Federal Register / Vol. 77, No. 245 / Thursday, December 20, 2012 / Notices tkelley on DSK3SPTVN1PROD with application transparency. The January 17, 2013; January 31, 2013; February 21, 2013; March 14, 2013; and April 4, 2013, meetings will build on stakeholders’ previous work. More information about stakeholders’ work is available at: http://www.ntia.doc.gov/ other-publication/2012/privacymultistakeholder-process-mobileapplication-transparency. Time and Date: NTIA will convene meetings of the privacy multistakeholder process on January 17, 2013; January 31, 2013; February 21, 2013; March 14, 2013; and April 4, 2013, from 1:00 p.m. to 5:00 p.m., Eastern Time. The meeting times are subject to change. Please refer to NTIA’s Web site, http://www.ntia.doc.gov/ other-publication/2012/privacymultistakeholder-process-mobileapplication-transparency, for the most current information. Place: The meetings will be held in the Boardroom at the American Institute of Architects, 1735 New York Avenue NW., Washington, DC 20006. The location of the meetings is subject to change. Please refer to NTIA’s Web site, http://www.ntia.doc.gov/otherpublication/2012/privacymultistakeholder-process-mobileapplication-transparency, for the most current information. Other Information: The meetings are open to the public and the press. The meetings are physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to John Verdi at (202) 482–8238 or jverdi@ntia.doc.gov at least seven (7) business days prior to each meeting. The meetings will also be webcast. Requests for real-time captioning of the webcast or other auxiliary aids should be directed to John Verdi at (202) 482– 8238 or jverdi@ntia.doc.gov at least seven (7) business days prior to each meeting. There will be an opportunity for stakeholders viewing the webcast to participate remotely in the meetings through a moderated conference bridge, including polling functionality. Access details for the meetings are subject to change. Please refer to NTIA’s Web site, http://www.ntia.doc.gov/otherpublication/2012/privacymultistakeholder-process-mobileapplication-transparency, for the most current information. Dated: December 17, 2012. Kathy Smith, Chief Counsel, National Telecommunications and Information Administration. [FR Doc. 2012–30684 Filed 12–19–12; 8:45 am] BILLING CODE 3510–60–P VerDate Mar<15>2010 16:07 Dec 19, 2012 Jkt 229001 BUREAU OF CONSUMER FINANCIAL PROTECTION [Docket No. CFPB–2012–0048] Request for Information Regarding Credit Card Market Bureau of Consumer Financial Protection. ACTION: Notice and request for information. AGENCY: Section 502(a) of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act or Act) requires the Bureau of Consumer Financial Protection (Bureau) to conduct a review (Review) of the consumer credit card market, within the limits of its existing resources available for reporting purposes. In connection with conducting that Review, and in accordance with Section 502(b) of the CARD Act, the Bureau is soliciting information from the public about a number of aspects of the consumer credit card market, which are described further below. DATES: Comments must be submitted on or before February 19, 2013 to be assured of consideration. ADDRESSES: You may submit responsive information and other comments, identified by Docket No. CFPB–2012– 0048, by any of the following methods: • Electronic: http:// www.regulations.gov. Follow the instructions for submitting comments. • Mail/Hand Delivery/Courier: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552. Instructions: The Bureau encourages the early submission of information and other comments. All submissions must include the agency name and docket number. In general, all submissions received will be posted without change to http://www.regulations.gov. In addition, submissions will be available for public inspection and copying at 1700 G Street NW., Washington, DC 20552, on official business days between the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an appointment to inspect the documents by telephoning (202) 435–7275. All submissions, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Sensitive personal information, such as account numbers or social security numbers, should not be included. Submissions will not be edited to remove any identifying or contact information. SUMMARY: PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 Wei Zhang, Division of Research, Markets and Regulations, Consumer Financial Protection Bureau, at (202) 435–7700, or wei.zhang@cfpb.gov. FOR FURTHER INFORMATION CONTACT: Authority: 15 U.S.C. 1616(a), (b). Section 502(a) of the CARD Act 1 requires the Bureau to conduct a review of the consumer credit card market. To inform that review, Section 502(b) 2 instructs the Bureau to seek public comment. Accordingly, the Bureau hereby invites members of the public, including consumers, credit card issuers, industry analysts, consumer advocates, and other interested persons to submit information and other comments relevant to the issued expressly identified in Section 2 below, as well as any information they believe is relevant to assessing the impact of the CARD Act on the consumer credit card market. SUPPLEMENTARY INFORMATION: 1. Background: The CARD Act The CARD Act was signed into law in May 2009.3 Passage of the Act was expressly intended to ‘‘establish fair and transparent practices related to the extension of credit’’ in the credit card market.4 To achieve these agreed-upon purposes, the Act changed the requirements applicable to credit card pricing in a number of significant respects. Prior to the CARD Act, the applicable provisions of the Truth in Lending Act (TILA) and its implementing regulation (Regulation Z) focused principally on how companies needed to disclose product pricing terms to consumers, and otherwise placed few substantive limits on industry practice.5 After the CARD Act, however, TILA and Regulation Z also imposed direct limits on a number of pricing practices that Congress deemed unfair or unclear to consumers. The following is a high-level summary of CARD Act changes. Further information about the CARD Act is available on the Bureau’s Web site at www.consumerfinance.gov/credit-cards. (a) Interest Rate Increases The Act limits the circumstances under which credit card issuers can increase interest rates on existing and new balances. For new balances, the 1 See 15 U.S.C. 1616(a). 15 U.S.C. 1616(b). 3 The CARD Act’s provisions took effect in three stages: August 2009, February 2010, and October 2011. 4 Text of H.R. 627 (111th), available at www.govtrack.us/congress/bills/111/hr627/text. 5 The Federal Reserve Board promulgated several substantive rules shortly before passage of the CARD Act, but they had not taken effect before the Act was signed into law. 2 See E:\FR\FM\20DEN1.SGM 20DEN1 Federal Register / Vol. 77, No. 245 / Thursday, December 20, 2012 / Notices card issuer must give the consumer 45 days written notice of a rate increase, and most increases are barred during the first year after the account is opened. For existing balances, the card issuer generally cannot increase rates unless the consumer has missed two consecutive monthly payments and the requisite written notice has been provided.6 (b) Penalty Fee Restrictions Penalty fees, such as late fees or overlimit fees, must now be ‘‘reasonable and proportional’’ to the relevant violation of account terms. The implementing rules establish a safe harbor benchmark for reasonable and proportional late fees of $25 for a first late payment, and $35 for a second violation within the next six months.7 (c) Overlimit Fee Opt-In There are additional restrictions on the overlimit fees assessed when a consumer exceeds his or her assigned credit line. Following the Act, issuers may only charge such fees if the consumer expressly opts in to permit overlimit transactions.8 (e) Payment Allocation Subject to certain exceptions, when a consumer makes a payment on the account, issuers are now required to allocate that payment first to balances that are subject to higher interest rates.10 (f) Monthly Statements Monthly statements must describe how long it would take the consumer— and how much it would cost—to pay the full balance on the card by paying only the required minimum monthly payment. For comparison, the statement must also show how much it would cost the consumer each month to pay off his or her current balance in three years. Act § 101; see also 12 CFR 1026.9(c) and 55. 7 CARD Act § 102(b); see also 12 CFR 1026.52(b). Act § 102(a); see also 12 CFR 1026.56. 9 CARD Act § 106; see also 12 CFR 1026.5(b)(2)(ii), 10, 7(b)(11)(A). The Act also barred so-called ‘‘double-cycle billing,’’ a practice that enabled an issuer to charge interest on purchases for a billing cycle prior to the cycle for which the consumer paid late. CARD Act § 102(a); see 12 CFR 1026.54. 10 CARD Act § 104; see also 12 CFR 1026.53. tkelley on DSK3SPTVN1PROD with 8 CARD VerDate Mar<15>2010 16:07 Dec 19, 2012 Jkt 229001 (g) Ability to Repay Card issuers cannot provide or increase a credit line on a card until they have taken reasonable steps to consider the ability of the consumer to make payments on the amount of that line.12 (h) Student Cardholders The Act imposed new restrictions related to on-campus marketing of credit cards. In addition, any credit card applicant under 21 years of age must demonstrate his or her ability to make payments on the account.13 2. Issues on Which the Bureau Seeks Public Comment for Its Review (d) Payment Timing Payments must now be due on the same day of each month. In addition, the Act and implementing regulations contain a set of rules as to when payments must be treated as timely. There are also rules about how much notice cardholders must receive before a bill is due.9 6 CARD Regulations issued by the Federal Reserve Board and inherited by the Bureau, which took effect along with the CARD Act implementing rules, require each monthly statement to include the total amount of interest charged year to date, and a similar disclosure relating to the total amount of fees.11 In connection with its pending Review, the Bureau seeks information from members of the public about how the credit card market is functioning following the implementation of the CARD Act. Thus, the Bureau seeks comments about any of the subjects addressed in (a) through (g) below, which are identified in Section 502(a) of the CARD Act. In addition, the Bureau wants to be alerted to and understand the information that consumers, credit card issuers, consumer groups, and others believe is most relevant to assessing the impact of the Act on the consumer credit card market, so this list of subjects should not be viewed as exhaustive. Please feel free to comment generally and/or respond to any or all of the questions below but please be sure to indicate in your comments on which topic areas or questions you are commenting: (a) The Terms of Credit Card Agreements and the Practices of Credit Card Issuers How have the substantive terms and conditions of credit card agreements changed following the CARD Act? How have issuers changed their pricing, marketing, underwriting or other practices? What changes have benefited consumers? Are there changes that have harmed consumers? If there are such harms, how have they been caused, and 11 12 CFR 1026.7(b). Act § 109; see also 12 CFR 1026.51(a). 13 CARD Act §§ 301, 303, 304; see also 12 CFR 1026.51(b), 57. 12 CARD PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 75411 how could they be mitigated, and at what cost? (b) The Effectiveness of Disclosure of Terms, Fees, and Other Expenses of Credit Card Plans How effective are post-CARD Act disclosures of rates, fees, and other cost terms of credit card accounts? Do consumers better understand the true cost of credit card use in light of the CARD Act? To what extent and in what ways do consumers use the new information that is now available to them about credit card costs? What further improvements in disclosure would benefit consumer cardholders at this point, and what costs would be incurred in providing such disclosures? (c) The Adequacy of Protections Against Unfair or Deceptive Acts or Practices Relating to Credit Card Plans Do unfair or deceptive acts and practices still exist in the credit card market, and if so, in what form and with what frequency and effect? How might those acts and practices be prevented and at what cost? Have issuers circumvented, or tried to circumvent, any CARD Act protections against unfair or deceptive acts or practices? (d) Whether implementation of the CARD Act has affected the cost and availability of credit, particularly with respect to non-prime borrowers? Controlling for risk, has the upfront interest rate or the overall, all-in cost of credit changed as a result of the CARD Act? Are there particular segments of the credit card market for which the Act has impacted the cost or access to credit? Has the CARD Act had any nonprice impacts on access to credit, particularly for consumers who do not have prime credit scores? (e) Has the CARD Act impacted the safety and soundness of any credit card issuers? Has the Act impacted the quality of issuer assets or issuers’ return on equity? Are there ways to mitigate any adverse consequences and, if so, at what cost to consumer protections? (f) Has the CARD Act affected the use of risk-based pricing? To what extent are card issuers still engaged in risk-based pricing? What practices have issuers adopted in the wake of rules that restrict account repricing, and how have these practices affected consumers? E:\FR\FM\20DEN1.SGM 20DEN1 75412 Federal Register / Vol. 77, No. 245 / Thursday, December 20, 2012 / Notices (g) Has implementation of the CARD Act had any effect on credit card product innovation? To what extent and in what ways has the Act spurred or hampered product innovation in the credit card market? If the Act has impacted innovation, what have been the follow-on impacts on consumers and other market participants? Dated: December 14, 2012. Garry Reeder, Chief of Staff, Bureau of Consumer Financial Protection. [FR Doc. 2012–30609 Filed 12–19–12; 8:45 am] BILLING CODE 4810–AM–P DEPARTMENT OF DEFENSE Office of the Secretary [Docket No. DOD–2012–OS–0016] Submission for OMB Review; Comment Request tkelley on DSK3SPTVN1PROD with ACTION: Notice. The Department of Defense has submitted to OMB for clearance, the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35). DATES: Consideration will be given to all comments received by January 22, 2013. Title and OMB Number: Joint Personnel Adjudication System; OMB Control Number 0704–TBD. Type of Request: New. Number of Respondents: 22,225. Responses per Respondent: 95. Annual Responses: 2,111,375. Average Burden per Response: 20 minutes. Annual Burden Hours: 703,792 hours. Needs and Uses: JPAS requires personal data collection to facilitate the initiation, investigation and adjudication of information relevant to DoD security clearances and employment suitability determinations for active duty military, civilian employees and contractors requiring such credentials. As a Personnel Security System it is the authoritative source for clearance information resulting in accesses determinations to sensitive/classified information and facilities. Affected Public: Business or other forprofit. Frequency: On occasion. Respondent’s Obligation: Required to obtain or retain a benefit. OMB Desk Officer: Ms. Jasmeet Seehra. Written comments and recommendations on the proposed VerDate Mar<15>2010 16:07 Dec 19, 2012 Jkt 229001 information collection should be sent to Ms. Seehra at the Office of Management and Budget, Desk Officer for DoD, Room 10236, New Executive Office Building, Washington, DC 20503. You may also submit comments, identified by docket number and title, by the following method: • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. Instructions: All submissions received must include the agency name, docket number and title for this Federal Register document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the Internet at http:// www.regulations.gov as they are received without change, including any personal identifiers or contact information. DOD Clearance Officer: Ms. Patricia Toppings. Written requests for copies of the information collection proposal should be sent to Ms. Toppings at WHS/ESD Information Management Division, 4800 Mark Center Drive, East Tower, Suite 02G09, Alexandria, VA 22350–3100. Dated: November 21, 2012. Patricia L. Toppings, OSD Federal Register Liaison Officer, Department of Defense. [FR Doc. 2012–30662 Filed 12–19–12; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF DEFENSE Office of the Secretary [Docket No. DOD–2010–OS–0111] Submission for OMB Review; Comment Request ACTION: Notice. The Department of Defense has submitted to OMB for clearance, the following proposal for collection of information under the provisions of the Paperwork Reduction Act (44 U.S.C. Chapter 35). DATES: Consideration will be given to all comments received by January 22, 2013. Title, Associated Forms and OMB Number: Department of Defense Education Activity Student Registration; DoDEA Form 600; OMB Control Number 0704–TBD. Type of Request: New. Number of Respondents: 3,392. Responses per Respondent: 1. Annual Responses: 3,392. Average Burden per Response: 30 minutes. PO 00000 Frm 00007 Fmt 4703 Sfmt 9990 Annual Burden Hours: 1,696 hours. Needs and Uses: This information collection is necessary to obtain information about Department of Defense military and civilian sponsors and the dependents they wish to enroll in a Department of Defense Education Activity (DoDEA) school. The information gathered on the sponsors is used to determine their dependents’ enrollment eligibility to attend the DoDEA schools and their enrollment category, (i.e., whether the sponsors’ dependents are authorized to enroll on a tuition-free or tuition-paying and space-required or space-available basis). Affected Public: Individuals or households; business or other for-profit; not-for-profit institutions; Federal government. Frequency: On occasion. Respondent’s Obligation: Required to obtain or retain benefits. OMB Desk Officer: Ms. Jasmeet Seehra. Written comments and recommendations on the proposed information collection should be sent to Ms. Seehra at the Office of Management and Budget, Desk Officer for DoD, Room 10236, New Executive Office Building, Washington, DC 20503. You may also submit comments, identified by docket number and title, by the following method: • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. Instructions: All submissions received must include the agency name, docket number and title for this Federal Register document. The general policy for comments and other submissions from members of the public is to make these submissions available for public viewing on the Internet at http:// www.regulations.gov as they are received without change, including any personal identifiers or contact information. DOD Clearance Officer: Ms. Patricia Toppings. Written requests for copies of the information collection proposal should be sent to Ms. Toppings at WHS/ESD Information Management Division, 4800 Mark Center Drive, East Tower, Suite 02G09, Alexandria, VA 22350–3100. Dated: November 23, 2012. Patricia L. Toppings, OSD Federal Register Liaison Officer, Department of Defense. [FR Doc. 2012–30661 Filed 12–19–12; 8:45 am] BILLING CODE 5001–06–P E:\FR\FM\20DEN1.SGM 20DEN1

Agencies

[Federal Register Volume 77, Number 245 (Thursday, December 20, 2012)]
[Notices]
[Pages 75410-75412]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30609]


=======================================================================
-----------------------------------------------------------------------

BUREAU OF CONSUMER FINANCIAL PROTECTION

[Docket No. CFPB-2012-0048]


Request for Information Regarding Credit Card Market

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice and request for information.

-----------------------------------------------------------------------

SUMMARY: Section 502(a) of the Credit Card Accountability 
Responsibility and Disclosure Act of 2009 (CARD Act or Act) requires 
the Bureau of Consumer Financial Protection (Bureau) to conduct a 
review (Review) of the consumer credit card market, within the limits 
of its existing resources available for reporting purposes. In 
connection with conducting that Review, and in accordance with Section 
502(b) of the CARD Act, the Bureau is soliciting information from the 
public about a number of aspects of the consumer credit card market, 
which are described further below.

DATES: Comments must be submitted on or before February 19, 2013 to be 
assured of consideration.

ADDRESSES: You may submit responsive information and other comments, 
identified by Docket No. CFPB-2012-0048, by any of the following 
methods:
     Electronic: http://www.regulations.gov. Follow the 
instructions for submitting comments.
     Mail/Hand Delivery/Courier: Monica Jackson, Office of the 
Executive Secretary, Consumer Financial Protection Bureau, 1700 G 
Street NW., Washington, DC 20552.
    Instructions: The Bureau encourages the early submission of 
information and other comments. All submissions must include the agency 
name and docket number. In general, all submissions received will be 
posted without change to http://www.regulations.gov. In addition, 
submissions will be available for public inspection and copying at 1700 
G Street NW., Washington, DC 20552, on official business days between 
the hours of 10 a.m. and 5 p.m. Eastern Time. You can make an 
appointment to inspect the documents by telephoning (202) 435-7275.
    All submissions, including attachments and other supporting 
materials, will become part of the public record and subject to public 
disclosure. Sensitive personal information, such as account numbers or 
social security numbers, should not be included. Submissions will not 
be edited to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: Wei Zhang, Division of Research, 
Markets and Regulations, Consumer Financial Protection Bureau, at (202) 
435-7700, or wei.zhang@cfpb.gov.

    Authority:  15 U.S.C. 1616(a), (b).

SUPPLEMENTARY INFORMATION: Section 502(a) of the CARD Act \1\ requires 
the Bureau to conduct a review of the consumer credit card market. To 
inform that review, Section 502(b) \2\ instructs the Bureau to seek 
public comment. Accordingly, the Bureau hereby invites members of the 
public, including consumers, credit card issuers, industry analysts, 
consumer advocates, and other interested persons to submit information 
and other comments relevant to the issued expressly identified in 
Section 2 below, as well as any information they believe is relevant to 
assessing the impact of the CARD Act on the consumer credit card 
market.
---------------------------------------------------------------------------

    \1\ See 15 U.S.C. 1616(a).
    \2\ See 15 U.S.C. 1616(b).
---------------------------------------------------------------------------

1. Background: The CARD Act

    The CARD Act was signed into law in May 2009.\3\ Passage of the Act 
was expressly intended to ``establish fair and transparent practices 
related to the extension of credit'' in the credit card market.\4\ To 
achieve these agreed-upon purposes, the Act changed the requirements 
applicable to credit card pricing in a number of significant respects. 
Prior to the CARD Act, the applicable provisions of the Truth in 
Lending Act (TILA) and its implementing regulation (Regulation Z) 
focused principally on how companies needed to disclose product pricing 
terms to consumers, and otherwise placed few substantive limits on 
industry practice.\5\ After the CARD Act, however, TILA and Regulation 
Z also imposed direct limits on a number of pricing practices that 
Congress deemed unfair or unclear to consumers. The following is a 
high-level summary of CARD Act changes. Further information about the 
CARD Act is available on the Bureau's Web site at 
www.consumerfinance.gov/credit-cards.
---------------------------------------------------------------------------

    \3\ The CARD Act's provisions took effect in three stages: 
August 2009, February 2010, and October 2011.
    \4\ Text of H.R. 627 (111th), available at www.govtrack.us/
congress/bills/111/hr627/text.
    \5\ The Federal Reserve Board promulgated several substantive 
rules shortly before passage of the CARD Act, but they had not taken 
effect before the Act was signed into law.
---------------------------------------------------------------------------

(a) Interest Rate Increases

    The Act limits the circumstances under which credit card issuers 
can increase interest rates on existing and new balances. For new 
balances, the

[[Page 75411]]

card issuer must give the consumer 45 days written notice of a rate 
increase, and most increases are barred during the first year after the 
account is opened. For existing balances, the card issuer generally 
cannot increase rates unless the consumer has missed two consecutive 
monthly payments and the requisite written notice has been provided.\6\
---------------------------------------------------------------------------

    \6\ CARD Act Sec.  101; see also 12 CFR 1026.9(c) and 55.
---------------------------------------------------------------------------

(b) Penalty Fee Restrictions

    Penalty fees, such as late fees or overlimit fees, must now be 
``reasonable and proportional'' to the relevant violation of account 
terms. The implementing rules establish a safe harbor benchmark for 
reasonable and proportional late fees of $25 for a first late payment, 
and $35 for a second violation within the next six months.\7\
---------------------------------------------------------------------------

    \7\ CARD Act Sec.  102(b); see also 12 CFR 1026.52(b).
---------------------------------------------------------------------------

(c) Overlimit Fee Opt-In

    There are additional restrictions on the overlimit fees assessed 
when a consumer exceeds his or her assigned credit line. Following the 
Act, issuers may only charge such fees if the consumer expressly opts 
in to permit overlimit transactions.\8\
---------------------------------------------------------------------------

    \8\ CARD Act Sec.  102(a); see also 12 CFR 1026.56.
---------------------------------------------------------------------------

(d) Payment Timing

    Payments must now be due on the same day of each month. In 
addition, the Act and implementing regulations contain a set of rules 
as to when payments must be treated as timely. There are also rules 
about how much notice cardholders must receive before a bill is due.\9\
---------------------------------------------------------------------------

    \9\ CARD Act Sec.  106; see also 12 CFR 1026.5(b)(2)(ii), 10, 
7(b)(11)(A). The Act also barred so-called ``double-cycle billing,'' 
a practice that enabled an issuer to charge interest on purchases 
for a billing cycle prior to the cycle for which the consumer paid 
late. CARD Act Sec.  102(a); see 12 CFR 1026.54.
---------------------------------------------------------------------------

(e) Payment Allocation

    Subject to certain exceptions, when a consumer makes a payment on 
the account, issuers are now required to allocate that payment first to 
balances that are subject to higher interest rates.\10\
---------------------------------------------------------------------------

    \10\ CARD Act Sec.  104; see also 12 CFR 1026.53.
---------------------------------------------------------------------------

(f) Monthly Statements

    Monthly statements must describe how long it would take the 
consumer--and how much it would cost--to pay the full balance on the 
card by paying only the required minimum monthly payment. For 
comparison, the statement must also show how much it would cost the 
consumer each month to pay off his or her current balance in three 
years. Regulations issued by the Federal Reserve Board and inherited by 
the Bureau, which took effect along with the CARD Act implementing 
rules, require each monthly statement to include the total amount of 
interest charged year to date, and a similar disclosure relating to the 
total amount of fees.\11\
---------------------------------------------------------------------------

    \11\ 12 CFR 1026.7(b).
---------------------------------------------------------------------------

(g) Ability to Repay

    Card issuers cannot provide or increase a credit line on a card 
until they have taken reasonable steps to consider the ability of the 
consumer to make payments on the amount of that line.\12\
---------------------------------------------------------------------------

    \12\ CARD Act Sec.  109; see also 12 CFR 1026.51(a).
---------------------------------------------------------------------------

(h) Student Cardholders

    The Act imposed new restrictions related to on-campus marketing of 
credit cards. In addition, any credit card applicant under 21 years of 
age must demonstrate his or her ability to make payments on the 
account.\13\
---------------------------------------------------------------------------

    \13\ CARD Act Sec. Sec.  301, 303, 304; see also 12 CFR 
1026.51(b), 57.
---------------------------------------------------------------------------

2. Issues on Which the Bureau Seeks Public Comment for Its Review

    In connection with its pending Review, the Bureau seeks information 
from members of the public about how the credit card market is 
functioning following the implementation of the CARD Act. Thus, the 
Bureau seeks comments about any of the subjects addressed in (a) 
through (g) below, which are identified in Section 502(a) of the CARD 
Act. In addition, the Bureau wants to be alerted to and understand the 
information that consumers, credit card issuers, consumer groups, and 
others believe is most relevant to assessing the impact of the Act on 
the consumer credit card market, so this list of subjects should not be 
viewed as exhaustive.
    Please feel free to comment generally and/or respond to any or all 
of the questions below but please be sure to indicate in your comments 
on which topic areas or questions you are commenting:

(a) The Terms of Credit Card Agreements and the Practices of Credit 
Card Issuers

    How have the substantive terms and conditions of credit card 
agreements changed following the CARD Act? How have issuers changed 
their pricing, marketing, underwriting or other practices? What changes 
have benefited consumers? Are there changes that have harmed consumers? 
If there are such harms, how have they been caused, and how could they 
be mitigated, and at what cost?

(b) The Effectiveness of Disclosure of Terms, Fees, and Other Expenses 
of Credit Card Plans

    How effective are post-CARD Act disclosures of rates, fees, and 
other cost terms of credit card accounts? Do consumers better 
understand the true cost of credit card use in light of the CARD Act? 
To what extent and in what ways do consumers use the new information 
that is now available to them about credit card costs? What further 
improvements in disclosure would benefit consumer cardholders at this 
point, and what costs would be incurred in providing such disclosures?

(c) The Adequacy of Protections Against Unfair or Deceptive Acts or 
Practices Relating to Credit Card Plans

    Do unfair or deceptive acts and practices still exist in the credit 
card market, and if so, in what form and with what frequency and 
effect? How might those acts and practices be prevented and at what 
cost? Have issuers circumvented, or tried to circumvent, any CARD Act 
protections against unfair or deceptive acts or practices?

(d) Whether implementation of the CARD Act has affected the cost and 
availability of credit, particularly with respect to non-prime 
borrowers?

    Controlling for risk, has the upfront interest rate or the overall, 
all-in cost of credit changed as a result of the CARD Act? Are there 
particular segments of the credit card market for which the Act has 
impacted the cost or access to credit? Has the CARD Act had any non-
price impacts on access to credit, particularly for consumers who do 
not have prime credit scores?

(e) Has the CARD Act impacted the safety and soundness of any credit 
card issuers?

    Has the Act impacted the quality of issuer assets or issuers' 
return on equity? Are there ways to mitigate any adverse consequences 
and, if so, at what cost to consumer protections?

(f) Has the CARD Act affected the use of risk-based pricing?

    To what extent are card issuers still engaged in risk-based 
pricing? What practices have issuers adopted in the wake of rules that 
restrict account repricing, and how have these practices affected 
consumers?

[[Page 75412]]

(g) Has implementation of the CARD Act had any effect on credit card 
product innovation?

    To what extent and in what ways has the Act spurred or hampered 
product innovation in the credit card market? If the Act has impacted 
innovation, what have been the follow-on impacts on consumers and other 
market participants?

    Dated: December 14, 2012.
Garry Reeder,
Chief of Staff, Bureau of Consumer Financial Protection.
[FR Doc. 2012-30609 Filed 12-19-12; 8:45 am]
BILLING CODE 4810-AM-P