Tag Archives: Credit CARD Act

The CFPB Is Taking a Closer Look at Financial Products Marketed to Students Enrolled in Institutions of Higher Education

On January 31, 2013, the Consumer Financial Protection Bureau (“CFPB”) published a notice in the Federal Register seeking information regarding the impact of financial products marketed to students enrolled in institutions of higher education (the “Notice”). Although the Credit Card Accountability, Responsibility and Disclosure Act of 2009 includes requirements that financial companies publicly disclose credit card … Continue reading this entry

Federal Court Enjoins Regulation Z Amendment

A federal judge in Sioux Falls, South Dakota, has issued a preliminary injunction to postpone and enjoin the effective date of a recent amendment to Federal Reserve Board Regulation Z. The case was brought by credit card issuer First Premier Bank and its subsidiary Premier Bankcard, LLC (collectively First Premier) against the Bureau of Consumer Financial Protection (which now … Continue reading this entry

Federal Reserve Board Reports to Congress on College Credit Card Agreements

Yesterday, the Federal Reserve Board issued its second report to Congress concerning agreements between credit card issuers and institutions of higher education or certain affiliated organizations (e.g., alumni associations or foundations) that provide for credit card issuance to college students. Under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (the Credit CARD Act), credit card … Continue reading this entry

Old Reg Z Does Not Require Notice of Changes Contemplated in Cardholder Agreement

Yesterday the United States Supreme Court unanimously ruled that the pre-2009 version of Reg Z did not require a new notice to be given when a creditor raises the interest rate on a credit card account in response to a cardholder default. Although the case was decided under now repealed law, it is important for a … Continue reading this entry

Ninth Circuit Creates Split About the Meaning of the Word "Sue" as Used in the CROA

The Credit Repair Organizations Act (CROA), found at 15 U.S.C. § 1679, was enacted to ensure consumers of services of credit repair organizations are provided with the information necessary to make informed decisions regarding the purchase of such services; and to protect the public from unfair or deceptive advertising and business practices by credit repair … Continue reading this entry

Fed Restricts Fees and Expiry Dates for Stored Value Cards and Gift Certificates

Today, the Federal Reserve Board issued a final rule restricting certain fees and expiration dates applicable to gift certificates, store gift cards and other prepaid or stored value cards. The rule only applies to certificates and cards sold to consumers. Certain loyalty, award and promotional gift cards are exempt from the new restrictions. Limits on Fees:  In general, … Continue reading this entry

Barney Frank: The Credit CARD Act Is Working

Today — the first day that many of the key provisions of the Credit CARD Act go into effect — Representative Barney Frank, chair of the Financial Services Committee, issued a press release in which he claims the Act is working and credit card holders are reaping the benefits. In support of the claim, Rep. … Continue reading this entry

Supreme Court Watch: Chase Bank v. McCoy

Today, the United States Supreme Court invited the Solicitor General to file a brief expressing the Government’s position on Chase Bank USA, N.A.’s (“Chase”) cert petition with the following question presented: When a creditor increases the periodic rate on a credit card account in response to a cardholder default, pursuant to a default rate term … Continue reading this entry

Federal Reserve Issues Credit Card Act Regulations

The Federal Reserve Board issued final rules yesterday amending Regulation Z and implementing certain provisions of the Credit Card Accountability and Disclosure Act of 2009. Most of the rules are effective February 22, 2010. A couple are already in place. The final rules are more than 1500 pages long counting the commentary, but are summarized … Continue reading this entry

Debt Settlement Firm Offers "Rate Jacking" Story Contest

Calling the current political climate “pro-consumer” is perhaps stating the obvious. But when does capitalizing on the resulting rhetoric and negative sentiment go too far? How about a “Contest For Consumers Who Were Rate Jacked in 2009,” with the grand prize of free debt settlement services? Debt settlement company Consumer Recovery Network, a self-proclaimed “ethical, … Continue reading this entry

Class Action Suit Filed Against Citibank Over Increased Annual Percentage Rates

On Tuesday, a putative class of plaintiffs filed a Complaint in the federal district court of Rhode Island against Citibank, alleging that Citibank is illegally raising annual percentage rates (“APRs”) before the effective date of the Credit Card Account and Responsibility and Disclosure Act of 2009 (“Credit CARD Act”).… Continue reading this entry

Proposed Accelerated Credit CARD Act Reforms Headed to Senate

The House of Representative has approved legislation that will move up the effective date of many reforms under the Credit Card Accountability, Responsibility, and Disclosure ACT (“Credit CARD Act”) that were scheduled for implementation in February and August next year. In August of this year, the Credit CARD Act began requiring credit card providers to … Continue reading this entry

Senator Chris Dodd Introduces New Bill to Immediately Freeze Credit Card Interest Rates

Senate Banking Committee Chairman Chris Dodd introduced a bill today that seeks to freeze interest rates on existing credit card balances. The Credit Card Accountability, Responsibility, and Disclosure Act (the “Credit CARD Act”), passed by Congress in May, currently allows interest rate increases on existing balances under limited circumstances. The new bill, if passed by … Continue reading this entry