Four former servicemembers brought a putative class action against Citibank, alleging that it was violating the Servicemembers Civil Relief Act (SCRA) by charging certain interest rates on their credit card balances. Citibank moved to compel arbitration pursuant to the terms of the relevant credit card account agreements, but the district court denied the motion, citing […]
Category Archives: Credit Cards
State and federal courts have concurrent jurisdiction over claims brought under the Fair and Accurate Credit Transactions Act (FACTA). But apart from the merits of a FACTA claim, state and federal courts have different requirements for standing. So when a defendant removes a FACTA action from state to federal court, but the claim does not […]
MarketWatch has a story here and the American Banker’s Pola Rocha and Kevin Wack take a deeper dive here (behind paywall but also available on Lexis). Former President Trump describes the cap as temporary. It looks like an attempt to pander to voters with credit card debt. It is also hard to reconcile with the fact […]
The Consumer Financial Protection Bureau analyzed several hundred consumer complaints relating to the administration of credit card rewards programs and identified four recurring themes that resulted in consumers not receiving the rewards they were promised: (1) unexpected promotional conditions, (2) devaluation, (3) redemption problems, and (4) revocation. The report is here.
Bloomberg’s Evan Weinberger has the story, as well as a link to the opinion, here. (Behind a paywall.) Addendum from Allison: The order granting an injunction is here. CNBC’s story is here.
Junk fees are likely to feature in the election this year, so for that reason alone, it would be useful to know what they are. Sometimes they seem to be defined by examples; you can find such a list of examples (as well as a definition that strikes me as underinclusive) here. Because the very […]
At the House Financial Services Committee April 16, 2024 hearing titled Agency Audit: Reviewing CFPB Financial Reporting & Transparency, Professor Christopher Peterson of Utah, in response to Ranking Member Maxine Waters’ question about why some members of Congress would oppose the CFPB late fee regulation: “I don’t know why you are going to bat for these […]
Policy battles over consumer protection often hinge on what’s better for consumers. That’s because consumer advocates often call for reforms that will aid consumers while the industry, which presumably doesn’t want to oppose proposals based simply on the position that they will cut into industry profits, instead attacks the claim that the reforms will actually […]
Today, the CFPB released a final rule to ban excessive credit card late fees, closing what it refers to as a loophole in a 2010 Rule. The agency predicts typical fees will be reduced from $32 to $8. Update: The Chamber of Commerce has already committed to filing a challenge to the Rule.
A Consumer Financial Protection Bureau report on the first set of results from its newly updated Terms of Credit Card Plans survey reveals that large banks are offering worse credit card terms and interest rates than small banks and credit unions, regardless of credit risk. In fact, the 25 largest credit card issuers charged customers […]