Request for Information Regarding Consumer Credit Card Market, 13313-13315 [2017-04797]

Download as PDF Federal Register / Vol. 82, No. 46 / Friday, March 10, 2017 / Notices Mandatory Source(s) of Supply: Peckham Vocational Industries, Inc., Lansing, MI Contracting Activity: W40M Northern Region Contract Ofc Amy B. Jensen, Director, Business Operations. [FR Doc. 2017–04763 Filed 3–9–17; 8:45 am] BILLING CODE 6353–01–P BUREAU OF CONSUMER FINANCIAL PROTECTION [Docket No. CFPB–2017–0006] Request for Information Regarding Consumer Credit Card Market Bureau of Consumer Financial Protection. ACTION: Notice and request for information. AGENCY: The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act or Act) requires the Bureau of Consumer Financial Protection (Bureau or CFPB) 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 the Act, the Bureau is soliciting information from the public about a number of aspects of the consumer credit card market as described further below. DATES: Comments must be submitted on or before June 8, 2017 to be assured of consideration. ADDRESSES: You may submit responsive information and other comments, identified by the document title and Docket No. CFPB–2017–0006, by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Email: FederalRegisterComments@ cfpb.gov. Include the document title and Docket No. CFPB–2017- 0006 in the subject line of the message. • Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552. • Hand Delivery/Courier: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1275 First Street NE., Washington, DC 20002. Instructions: All submissions should include the agency name and docket number for this proposal. Because paper mail in the Washington, DC area and at the Bureau is subject to delay, commenters are encouraged to submit comments electronically. In general, all sradovich on DSK3GMQ082PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:37 Mar 09, 2017 Jkt 241001 comments received will be posted without change to https:// www.regulations.gov. In addition, comments will be available for public inspection and copying at 1275 First Street NE., Washington, DC 20002, 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 comments, 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. Comments generally will not be edited to remove any identifying or contact information. FOR FURTHER INFORMATION CONTACT: For general inquiries, submission process questions, or any additional information, please contact Wei Zhang, Credit Card Program Manager, 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). Section 502(a) of the CARD Act 1 requires the Bureau to conduct a review, within the limits of its existing resources available for reporting purposes, of the consumer credit card market every two years. To inform that review, section 502(b) 2 instructs the Bureau to seek public comment. The Bureau’s first such review was published in October, 2013; the Bureau’s second such review was published in December, 2015.3 To inform the Bureau’s next review, 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 issues expressly identified in section 2 below, as well as any information they believe is relevant to a review of the credit card market. SUPPLEMENTARY INFORMATION: 1. Background: The CARD Act The CARD Act was signed into law in May 2009.4 Passage of the Act was 1 See 15 U.S.C. 1616(a). 15 U.S.C. 1616(b). 3 CARD Act Report, available at, https:// files.consumerfinance.gov/f/201309_cfpb_card-actreport.pdf; The Consumer Credit Card Market, available at https://files.consumerfinance.gov/f/ 201512_cfpb_report-the-consumer-credit-cardmarket.pdf. 4 The CARD Act’s provisions took effect in three stages: August 2009, February 2010, and October 2011. 2 See PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 13313 expressly intended to ‘‘establish fair and transparent practices related to the extension of credit’’ in the credit card market.5 To achieve these agreed-upon purposes, the Act changed the requirements applicable to credit card pricing in a number of significant respects including direct limits on a number of pricing practices that Congress deemed unfair or unclear to consumers. 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. The Bureau seeks comments in two primary areas. First, the Bureau seeks comments on the experiences of consumers in the credit card market and on the overall health of the credit card market, including but not limited to those questions explicitly outlined in section 502(a) and in (a) through (d) below. Second, the Bureau seeks comments on eight areas of further interest, some but not all of which were discussed in the previous Review, published October 2013, delineated in (e) through (m) below. 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 the Bureau’s review of the credit card market, so this list of subjects should not be viewed as exhaustive. Commenters are encouraged to address any other aspects of the consumer credit card market that they consider would be of interest or concern to the Bureau. 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 or the length and complexity of such agreements changed over the past two years? How have issuers changed their pricing, marketing, underwriting, or other practices? (b) The Effectiveness of Disclosure of Terms, Fees, and Other Expenses of Credit Card Plans How effective are current disclosures of rates, fees, and other cost terms of 5 Public E:\FR\FM\10MRN1.SGM Law 111–24, 123 Stat. 1734 (2009). 10MRN1 13314 Federal Register / Vol. 82, No. 46 / Friday, March 10, 2017 / Notices credit card accounts in conveying to consumers the costs of credit card plans? What further improvements in disclosure, if any, 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 or Unlawful Discrimination Relating to Credit Card Plans Do unfair, deceptive, or abusive acts and practices, or unlawful discrimination, still exist in the credit card market, and if so, in what form and with what frequency and effect? How might any such conduct be prevented and at what cost? (d) The Cost and Availability of Consumer Credit Cards, the Use of RiskBased Pricing for Consumer Credit Cards, and Consumer Credit Card Product Innovation How have the cost and availability of consumer credit cards (including with respect to non-prime borrowers), the use of risk-based pricing for consumer credit cards, and consumer credit card product innovation changed since the Bureau reported on the credit card market in 2015? What has driven those changes— or, if there has been little change, the stability in those metrics? How are consumers with lower credit scores faring in the market? Has the impact of the CARD Act on these factors changed over the past two years? (e) Deferred Interest Products The Bureau’s prior Review found that deferred interest products, while popular, can pose risks to consumers. How have market trends and issuer practices evolved since the Bureau’s prior Review? What areas of risk still remain for consumers? What, if anything, should be done to address these risks? sradovich on DSK3GMQ082PROD with NOTICES (f) Subprime Specialist Products The Bureau’s prior Review examined the practices and metrics of certain ‘‘subprime specialist’’ issuers who provide cards to millions of consumers with lower credit scores. These issuers offer products to consumers distinguished by their high cost and their reliance on fees, rather than finance charges, relative to mass market issuers. How does the consumer experience of using these cards compare to the experience of consumers with similar credit profiles when using mass market credit cards? VerDate Sep<11>2014 18:37 Mar 09, 2017 Jkt 241001 (g) Third-Party Comparison Sites Third party comparison sites are Web sites that provide information to consumers about different credit card products in order to facilitate the selection of a product. The Bureau has received indications that some such sites generate significant revenue from issuer payments made in exchange for approved applications, and that in many cases contracts between sites and issuers can influence or explicitly determine which (and how) products and choices are presented to consumers. To what degree do consumers understand the benefits and risks of using third party comparison sites? To what degree do existing standards, practices, and disclosures protect consumers from unfair, deceptive, and abusive acts and practices? Where, if anywhere, do opportunities for improvement exist, and how would any such improvements most appropriately be realized? (h) Innovation The Bureau’s prior Review noted two major trends in financial innovation which are poised to substantially impact the credit card market. The first was advancements and evolutions in payment security and form factor, including both the widespread adoption of EMV standards and the possibility for wider adoption of mobile payments. The second was the trend toward new consumer lending models potentially competing with credit cards, both indirectly by being marketed as a tool for debt consolidation and more directly at point-of-sale. To what degree, have either of these trends advanced in ways both expected and unexpected over the past two years? Which of these trends appear likely to have the greatest impact on the consumer credit card market in the foreseeable future? What are the benefits and risks to consumers posed by these trends? What other innovations are impacting, or are likely to impact, consumers in the credit card marketplace? (i) Secured Credit Cards The Bureau believes that secured credit cards potentially offer consumers with limited or damaged credit history a beneficial way to both access credit and build or rebuild a positive credit record. The Bureau has taken note of some indications that secured card originations have increased and that new entrants to the market signal increasing issuer interest in offering this potentially valuable product to consumers. What is the current state of the secured credit card market, and PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 what evidence is there to support indications of positive consumer outcomes? What obstacles, including regulatory obstacles or obstacles with potential regulatory solutions, may prevent secured cards from reaching their potential in the marketplace? What risks should consumers be aware of when choosing a secured card? (j) Online and Mobile Account Servicing The Bureau’s prior Review found that large and increasing numbers of consumers are enrolling in issuers’ online and mobile account servicing platforms. That Review also found that many of those consumers have both opted out of receiving paper statements and appear to rarely access their statements online. These consumers therefore rarely encounter certain mandatory disclosures intended to encourage and enable positive outcomes for consumers who have not always had positive experiences with credit cards. To what extent are consumers who, for example, make only minimum payments, or have a higher propensity towards making payments late, not encountering these disclosures? What other potential benefits or risks does a broader shift towards digital account servicing pose to consumers? What other practices or potential innovations are issuers engaging in to accomplish the same goals as those disclosures? What obstacles, including but not limited to specific regulatory obstacles, inhibit issuers from further innovating in leveraging online and mobile account servicing platforms to improve consumers’ experiences and outcomes using credit cards? (k) Rewards Products The Bureau’s prior review found that rewards programs associated with credit cards are prevalent, popular, and can provide value to consumers. That same Review identified areas for concern regarding the impact of rewards on consumer choice and usage of credit cards, as well as disclosure practices and program structure. How have market trends and issuer practices evolved since the Bureau’s prior review? What areas of risk still remain for consumers? What, if anything, should be done to address those? (l) Variable Interest Rates The Bureau’s prior Review found that most credit cards now have variable interest rates. Those credit card rates will rise when background interest rates increase. To what extent are consumers aware that their credit card borrowing costs will increase on funds already borrowed when market rates increase? E:\FR\FM\10MRN1.SGM 10MRN1 Federal Register / Vol. 82, No. 46 / Friday, March 10, 2017 / Notices What common practices are issuers using to inform consumers of such rate increases? What practices, if any, should issuers adopt to help consumers understand the implications of card use in a rising interest rate environment? (m) Debt Collection The Bureau’s prior Review examined the policies and practices of consumer credit card issuers’ collections and debt sales operations. What, if any, changes have been made in such policies and practices since the last Review? If they have changed, what drove the applicable changes? What associated market metrics have changed as a result, and how did such changes occur? Have market metrics changed in other significant ways, and if so, how and why? Dated: March 6, 2017. Leandra English, Chief of Staff, Bureau of Consumer Financial Protection. [FR Doc. 2017–04797 Filed 3–9–17; 8:45 am] BILLING CODE 4810–AM–P DEPARTMENT OF DEFENSE Office of the Secretary [Docket ID DOD–2015–OS–0129] Proposed Collection; Comment Request Office of the Under Secretary of Defense for Intelligence, DoD. ACTION: Notice. AGENCY: In compliance with the Paperwork Reduction Act of 1995, the Office of the Under Secretary of Defense for Intelligence announces a proposed public information collection and seeks public comment on the provisions thereof. Comments are invited on: Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; the accuracy of the agency’s estimate of the burden of the proposed information collection; ways to enhance the quality, utility, and clarity of the information to be collected; and ways to minimize the burden of the information collection on respondents, including through the use of automated collection techniques or other forms of information technology. DATES: Consideration will be given to all comments received by May 9, 2017. ADDRESSES: You may submit comments, identified by docket number and title, by any of the following methods: sradovich on DSK3GMQ082PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:37 Mar 09, 2017 Jkt 241001 • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Mail: Department of Defense, Office of the Deputy Chief Management Officer, Directorate for Oversight and Compliance, Regulatory and Advisory Committee Division, 4800 Mark Center Drive, Mailbox #24, Suite 08D09B, Alexandria, VA 22350–1700. 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 https:// www.regulations.gov as they are received without change, including any personal identifiers or contact information. Any associated form(s) for this collection may be located within this same electronic docket and downloaded for review/testing. Follow the instructions at https:// www.regulations.gov for submitting comments. Please submit comments on any given form identified by docket number, form number, and title. FOR FURTHER INFORMATION CONTACT: To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to the Office of the Under Secretary of Defense for Intelligence, Office of the Director for Defense Intelligence (Intelligence & Security), Security Policy and Oversight Division (SPOD), 5000 Defense Pentagon, Room 2B718, ATTN: Valerie Heil, Arlington, VA 20301–5000, or call ODDI(I&S) SPOD at 703–692–3754. SUPPLEMENTARY INFORMATION: Title; Associated Form; and OMB Number: Department of Defense Contract Security Classification Specification, DD Form 254; OMB Control Number 0704–XXXX. Needs and Uses: The information collection requirement, authorized by the DoD 5220.22–R, ‘‘DoD Industrial Security Regulation,’’ and the Federal Acquisition Regulation, is necessary to provide security classification guidance to a U.S. contractor and any subcontractors in connection with a contract requiring access to classified information (hereinafter referred to as a ‘‘classified contract’’). The DD Form 254, with its attachments, supplements, and incorporated references, is the principal authorized means for providing security classification guidance to a U.S. contractor in connection with a classified contract. PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 13315 Affected Public: Business or other for profit. Annual Burden Hours: 37,948.67. Number of Respondents: 3,211. Responses per Respondent: 10.13. Annual Responses: 32,527.43. Average Burden per Response: 70 minutes. Frequency: On occasion. Respondents will already be a cleared contractor facility in the National Industrial Security Program under the security cognizance of DSS on behalf of Department of Defense (DoD). Such NISP contractors must provide contract security classification specifications with any classified subcontracts that they award to comply with the requirements of the National Industrial Security Program Operating Manual, DoD 5220.22–M. For those contractors under DoD security cognizance, that means using the DD Form 254, if awarding any contracts that require access to classified information for contract performance. If the form is not included with the classified contract, DSS, on behalf of DoD and those nonDoD agencies with which DoD has agreements for industrial security services, is unable to conduct effective oversight to determine that classified information is being protected according to contract or subcontract requirements. Dated: March 7, 2017. Aaron Siegel, Alternate OSD Federal Register Liaison Officer, Department of Defense. [FR Doc. 2017–04775 Filed 3–9–17; 8:45 am] BILLING CODE 5001–06–P DEPARTMENT OF EDUCATION Applications for New Awards; Gaining Early Awareness and Readiness for Undergraduate Programs (Partnership Grants) Office of Postsecondary Education, Department of Education. ACTION: Notice. AGENCY: Overview Information: Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP); Notice inviting applications for new awards for fiscal year (FY) 2017. Catalog of Federal Domestic Assistance (CFDA) Number: 84.334A. DATES: Applications Available: March 10, 2017. Deadline for Transmittal of Applications: April 19, 2017. Deadline for Intergovernmental Review: June 19, 2017. E:\FR\FM\10MRN1.SGM 10MRN1

Agencies

[Federal Register Volume 82, Number 46 (Friday, March 10, 2017)]
[Notices]
[Pages 13313-13315]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04797]


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

BUREAU OF CONSUMER FINANCIAL PROTECTION

[Docket No. CFPB-2017-0006]


Request for Information Regarding Consumer Credit Card Market

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice and request for information.

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

SUMMARY: The Credit Card Accountability Responsibility and Disclosure 
Act of 2009 (CARD Act or Act) requires the Bureau of Consumer Financial 
Protection (Bureau or CFPB) 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 the Act, the Bureau is 
soliciting information from the public about a number of aspects of the 
consumer credit card market as described further below.

DATES: Comments must be submitted on or before June 8, 2017 to be 
assured of consideration.

ADDRESSES: You may submit responsive information and other comments, 
identified by the document title and Docket No. CFPB-2017-0006, by any 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: FederalRegisterComments@cfpb.gov. Include the 
document title and Docket No. CFPB-2017- 0006 in the subject line of 
the message.
     Mail: Monica Jackson, Office of the Executive Secretary, 
Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 
20552.
     Hand Delivery/Courier: Monica Jackson, Office of the 
Executive Secretary, Consumer Financial Protection Bureau, 1275 First 
Street NE., Washington, DC 20002.
    Instructions: All submissions should include the agency name and 
docket number for this proposal. Because paper mail in the Washington, 
DC area and at the Bureau is subject to delay, commenters are 
encouraged to submit comments electronically. In general, all comments 
received will be posted without change to https://www.regulations.gov. 
In addition, comments will be available for public inspection and 
copying at 1275 First Street NE., Washington, DC 20002, 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 comments, 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. Comments generally will not 
be edited to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: For general inquiries, submission 
process questions, or any additional information, please contact Wei 
Zhang, Credit Card Program Manager, 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, within the limits of its existing 
resources available for reporting purposes, of the consumer credit card 
market every two years. To inform that review, section 502(b) \2\ 
instructs the Bureau to seek public comment.
---------------------------------------------------------------------------

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

    The Bureau's first such review was published in October, 2013; the 
Bureau's second such review was published in December, 2015.\3\ To 
inform the Bureau's next review, 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 issues expressly 
identified in section 2 below, as well as any information they believe 
is relevant to a review of the credit card market.
---------------------------------------------------------------------------

    \3\ CARD Act Report, available at, https://files.consumerfinance.gov/f/201309_cfpb_card-act-report.pdf; The 
Consumer Credit Card Market, available at https://files.consumerfinance.gov/f/201512_cfpb_report-the-consumer-credit-card-market.pdf.
---------------------------------------------------------------------------

1. Background: The CARD Act

    The CARD Act was signed into law in May 2009.\4\ Passage of the Act 
was expressly intended to ``establish fair and transparent practices 
related to the extension of credit'' in the credit card market.\5\ To 
achieve these agreed-upon purposes, the Act changed the requirements 
applicable to credit card pricing in a number of significant respects 
including direct limits on a number of pricing practices that Congress 
deemed unfair or unclear to consumers.
---------------------------------------------------------------------------

    \4\ The CARD Act's provisions took effect in three stages: 
August 2009, February 2010, and October 2011.
    \5\ Public Law 111-24, 123 Stat. 1734 (2009).
---------------------------------------------------------------------------

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. The Bureau seeks comments in two primary areas. First, the 
Bureau seeks comments on the experiences of consumers in the credit 
card market and on the overall health of the credit card market, 
including but not limited to those questions explicitly outlined in 
section 502(a) and in (a) through (d) below. Second, the Bureau seeks 
comments on eight areas of further interest, some but not all of which 
were discussed in the previous Review, published October 2013, 
delineated in (e) through (m) below.
    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 the Bureau's review of the credit card 
market, so this list of subjects should not be viewed as exhaustive. 
Commenters are encouraged to address any other aspects of the consumer 
credit card market that they consider would be of interest or concern 
to the Bureau.
    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 or the length and complexity of such agreements changed over 
the past two years? How have issuers changed their pricing, marketing, 
underwriting, or other practices?

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

    How effective are current disclosures of rates, fees, and other 
cost terms of

[[Page 13314]]

credit card accounts in conveying to consumers the costs of credit card 
plans? What further improvements in disclosure, if any, 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 or Unlawful Discrimination Relating to Credit Card Plans

    Do unfair, deceptive, or abusive acts and practices, or unlawful 
discrimination, still exist in the credit card market, and if so, in 
what form and with what frequency and effect? How might any such 
conduct be prevented and at what cost?

(d) The Cost and Availability of Consumer Credit Cards, the Use of 
Risk-Based Pricing for Consumer Credit Cards, and Consumer Credit Card 
Product Innovation

    How have the cost and availability of consumer credit cards 
(including with respect to non-prime borrowers), the use of risk-based 
pricing for consumer credit cards, and consumer credit card product 
innovation changed since the Bureau reported on the credit card market 
in 2015? What has driven those changes--or, if there has been little 
change, the stability in those metrics? How are consumers with lower 
credit scores faring in the market? Has the impact of the CARD Act on 
these factors changed over the past two years?

(e) Deferred Interest Products

    The Bureau's prior Review found that deferred interest products, 
while popular, can pose risks to consumers. How have market trends and 
issuer practices evolved since the Bureau's prior Review? What areas of 
risk still remain for consumers? What, if anything, should be done to 
address these risks?

(f) Subprime Specialist Products

    The Bureau's prior Review examined the practices and metrics of 
certain ``subprime specialist'' issuers who provide cards to millions 
of consumers with lower credit scores. These issuers offer products to 
consumers distinguished by their high cost and their reliance on fees, 
rather than finance charges, relative to mass market issuers. How does 
the consumer experience of using these cards compare to the experience 
of consumers with similar credit profiles when using mass market credit 
cards?

(g) Third-Party Comparison Sites

    Third party comparison sites are Web sites that provide information 
to consumers about different credit card products in order to 
facilitate the selection of a product. The Bureau has received 
indications that some such sites generate significant revenue from 
issuer payments made in exchange for approved applications, and that in 
many cases contracts between sites and issuers can influence or 
explicitly determine which (and how) products and choices are presented 
to consumers. To what degree do consumers understand the benefits and 
risks of using third party comparison sites? To what degree do existing 
standards, practices, and disclosures protect consumers from unfair, 
deceptive, and abusive acts and practices? Where, if anywhere, do 
opportunities for improvement exist, and how would any such 
improvements most appropriately be realized?

(h) Innovation

    The Bureau's prior Review noted two major trends in financial 
innovation which are poised to substantially impact the credit card 
market. The first was advancements and evolutions in payment security 
and form factor, including both the widespread adoption of EMV 
standards and the possibility for wider adoption of mobile payments. 
The second was the trend toward new consumer lending models potentially 
competing with credit cards, both indirectly by being marketed as a 
tool for debt consolidation and more directly at point-of-sale. To what 
degree, have either of these trends advanced in ways both expected and 
unexpected over the past two years? Which of these trends appear likely 
to have the greatest impact on the consumer credit card market in the 
foreseeable future? What are the benefits and risks to consumers posed 
by these trends? What other innovations are impacting, or are likely to 
impact, consumers in the credit card marketplace?

(i) Secured Credit Cards

    The Bureau believes that secured credit cards potentially offer 
consumers with limited or damaged credit history a beneficial way to 
both access credit and build or rebuild a positive credit record. The 
Bureau has taken note of some indications that secured card 
originations have increased and that new entrants to the market signal 
increasing issuer interest in offering this potentially valuable 
product to consumers. What is the current state of the secured credit 
card market, and what evidence is there to support indications of 
positive consumer outcomes? What obstacles, including regulatory 
obstacles or obstacles with potential regulatory solutions, may prevent 
secured cards from reaching their potential in the marketplace? What 
risks should consumers be aware of when choosing a secured card?

(j) Online and Mobile Account Servicing

    The Bureau's prior Review found that large and increasing numbers 
of consumers are enrolling in issuers' online and mobile account 
servicing platforms. That Review also found that many of those 
consumers have both opted out of receiving paper statements and appear 
to rarely access their statements online. These consumers therefore 
rarely encounter certain mandatory disclosures intended to encourage 
and enable positive outcomes for consumers who have not always had 
positive experiences with credit cards. To what extent are consumers 
who, for example, make only minimum payments, or have a higher 
propensity towards making payments late, not encountering these 
disclosures? What other potential benefits or risks does a broader 
shift towards digital account servicing pose to consumers? What other 
practices or potential innovations are issuers engaging in to 
accomplish the same goals as those disclosures? What obstacles, 
including but not limited to specific regulatory obstacles, inhibit 
issuers from further innovating in leveraging online and mobile account 
servicing platforms to improve consumers' experiences and outcomes 
using credit cards?

(k) Rewards Products

    The Bureau's prior review found that rewards programs associated 
with credit cards are prevalent, popular, and can provide value to 
consumers. That same Review identified areas for concern regarding the 
impact of rewards on consumer choice and usage of credit cards, as well 
as disclosure practices and program structure. How have market trends 
and issuer practices evolved since the Bureau's prior review? What 
areas of risk still remain for consumers? What, if anything, should be 
done to address those?

(l) Variable Interest Rates

    The Bureau's prior Review found that most credit cards now have 
variable interest rates. Those credit card rates will rise when 
background interest rates increase. To what extent are consumers aware 
that their credit card borrowing costs will increase on funds already 
borrowed when market rates increase?

[[Page 13315]]

What common practices are issuers using to inform consumers of such 
rate increases? What practices, if any, should issuers adopt to help 
consumers understand the implications of card use in a rising interest 
rate environment?

(m) Debt Collection

    The Bureau's prior Review examined the policies and practices of 
consumer credit card issuers' collections and debt sales operations. 
What, if any, changes have been made in such policies and practices 
since the last Review? If they have changed, what drove the applicable 
changes? What associated market metrics have changed as a result, and 
how did such changes occur? Have market metrics changed in other 
significant ways, and if so, how and why?

    Dated: March 6, 2017.
Leandra English,
Chief of Staff, Bureau of Consumer Financial Protection.
[FR Doc. 2017-04797 Filed 3-9-17; 8:45 am]
 BILLING CODE 4810-AM-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.