CFPB Presses Big Card Issuers on Their Credit Reporting Practices

Source: American Banker (Subscription may be required)

The Consumer Financial Protection Bureau is questioning the largest U.S. credit card issuers about the data they provide to credit bureaus, saying that shifts in industry practices may be hurting consumers’ ability to get cheaper loans.

A top CFPB official wrote this week to the CEOs of JPMorgan Chase, Citigroup, Bank of America, Capital One Financial, Discover Financial Services and American Express, saying that those companies appear to have stopped regularly reporting data on cardholder payments, and asking them to detail their practices.

Consumers’ ability to find cheaper credit is “impaired if actual payment amount information is being suppressed by major credit card companies,” John McNamara, principal assistant director at the CFPB’s research, markets and regulations division, wrote to the bank executives.