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MCUA Shares Information on Credit Card Market with CFPB

On May 18, 2015, the Missouri Credit Union Association (MCUA) filed a comment letter on the Consumer Financial Protection Bureau's (CFPB) review of the credit card market. The CFPB's review includes 12 topic areas related to the consumer credit card market. However, last week, the Bureau extended the comment deadline until June 17 for input on four of these areas: online disclosures, grace periods, add-on products, and debt collection. MCUA's  letter emphasizes the pro-consumer mission of credit unions, while at the same time stating that it is reasonable for credit unions to assess appropriate fees and charge appropriate interest rates for the services they offer.

The CFPB has acknowledged, and MCUA agrees, that overly complex disclosures tend to be less effective in informing the consumer about the terms of a financial product. However, MCUA asks the CFPB to continue to look for ways in which to improve disclosures, as they relate not only to the consumer but also to affected financial institutions. The Bureau was urged to be mindful of the regulatory constraints credit unions are currently facing from the CFPB and other federal financial regulators.

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