Prepaid cards that allow you to overdraft your account for a hefty fee could soon face extinction if federal regulators and Democratic lawmakers get their way. Earlier this month, Senator Jeff Merkley introduced a consumer protection bill dubbed Stopping Abuse…
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.