ABA: CFPB Actions on Credit Cards Once Again Put Politics Over Policy

"Today’s misleading press release is just the latest example of Director Chopra's CFPB choosing to put politics over policy to the detriment of the consumers it is charged with protecting. Despite widespread evidence that credit card rewards programs are highly popular and deliver tremendous value to tens of millions of U.S. cardholders from all walks of life, Director Chopra has once again chosen not to let facts get in the way of his decision to tarnish a hugely popular consumer product. Consumer complaints about credit card rewards are exceedingly rare, making up only about 0.09% of all the complaints submitted to the CFPB. In fact, a recent survey found that 8 in 10 (79%) consumers have at least one credit card that offers rewards. Nearly 9 in 10 (88%) said they value the rewards program on their credit cards, and by a 3-to-1 margin (64% vs. 21%), consumers say they would be disappointed to lose the rewards program on their credit cards due to government regulatory changes. The decision to focus on an area where complaints are extraordinarily uncommon as a way of creating political pressure is beneath any government agency and a disservice to American consumers.

“The CFPB’s claims on competition also don’t hold water. In fact, the CFPB is on the opposite side of the consumers it claims to represent. A survey in October shows that Americans see the nation’s banks competing aggressively for their business, and consumers believe they have ample access to banking services. Eight in 10 respondents (81%) agree they have multiple options when selecting products and services such as bank accounts, loans and credit cards. Eight in 10 consumers (81%) believe the financial services industry is highly competitive, and more than three-quarters (76%) believe their bank is transparent about disclosing fees.

“Finally, the Bureau’s credit card comparison tool threatens to confuse rather than educate consumers. Americans pick credit cards for a multitude of reasons including rewards and other benefits. By focusing so much on interest rates, especially for the tens of millions of cardholders who pay their bills in full each month, the Bureau risks steering consumers into the wrong card choices for their needs. 

“All businesses in this country deserve regulatory oversight that is rigorous yet fair and impartial. Sadly that is not what we have seen from this CFPB, and today’s action is a prime example.”