We’re watching you.
That was the message that Richard Cordray, the head of the federal Consumer Financial Protection Bureau, had for credit card issuers when he spoke this week to the business journalists attending the annual Society of American Business Editors and Writers conference this week in Indianapolis.
Cordray kept his formal remarks short, leaving lots of room for questions from the attending journalists.
I got one in about credit cards, asking, “Just over two years ago, the major tenets of the Credit CARD Act went into effect, so the question is, has it worked? And to the degree it hasn’t, will there be a need for another round of regulation or a CARD Act II?”
My short version of his answer: Yeah, it’s worked. I’m really close to this issue, and while the CARD Act eliminated the worst abuses, more may need to be done. We’re digesting what consumers have to say, and we’d really like it card issuers could come up with card agreements a human can understand.
Here’s the long version, a full transcript of his four-minute answer.
When I learned last week about what may have been the world’s largest data breach, I knew there were going to be potentially millions of victims. What I didn’t expect is that I may be one of them.
A new consultant’s report shows that in general, that Americans are still increasing their credit card spending, but their credit card issuers are hurting, and passing along their pain to consumers, and will continue to do so into next year.
Credit card issuers sharply tightened lending standards in July, hiking rates, slashing credit limits and generally getting stingier about issuing cards, according to a Federal Reserve survey released Monday afternoon.
The “Credit Cardholders Bill of Rights” bill got a first hearing in the House Thursday, and it doesn’t bode well for an industry that says it needs no additional oversight to have the overseers recount personal tales of how they got stiffed by their credit card issuer.