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ARTICLE · 03 JANUARY 2025

CFPB Increases Oversight Of Credit Card Practices

Goodwin Procter LLP
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In December 2024, the Consumer Financial Protection Bureau (Bureau) rolled out a series of important measures aimed at addressing potential misconduct in the credit card industry...

United StatesConsumer Protection
Robin L. Muir
Robin L. Muir

In December 2024, the Consumer Financial Protection Bureau (Bureau) rolled out a series of important measures aimed at addressing potential misconduct in the credit card industry, improving consumer protections, and promoting transparency and competition in the market. The Bureau's initiatives come at a time when credit card usage is peaking during the busy holiday season. Retail credit card sign-ups tend to surge during this period, making it critical for financial service providers to remain compliant with both current and forthcoming regulations.

Crackdown on Potentially Deceptive Credit Card Rewards Programs

In Consumer Financial Protection Circular 2024-07, and in line with the Bureau's heightened scrutiny of credit card rewards programs, the Bureau alerted law enforcement agencies to practices within credit card rewards programs that the Bureau considers deceptive, many of which are core components of many issuers' marketing strategies. Specifically, the

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