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MCUA to Weigh In on Second Part of CFPB's Credit Card Market Review

In a May 18th comment letter to the Consumer Financial Protection Bureau (CFPB), the Missouri Credit Union Association (MCUA) provided input on a number of issues related to the credit card market. As part of its review of the credit card market, the CFPB extended the deadline until June 17, for comments on online disclosures, grace periods, add-on products, and debt collection.

MCUA encourages the CFPB to explore the overall effectiveness of credit card disclosures, as well as ways in which disclosures can be simplified. However, MCUA urges the CFPB to be mindful of the financial resources credit card issuers incur with each change to a required disclosure—even if that change is minor and cautions the CFPB from any changes to the disclosures for grace periods before conducting a thorough cost-benefit analysis of such changes.

As part of its review, the CFPB seeks to better understand debt collection practices within the credit card industry. Unlike many larger financial institutions, credit unions often go out of their way to work with members that are experiencing financial difficulties and are unable to make their monthly payments. The CFPB's review should include a comparison of the delinquency and charge-off rates of banks to credit unions.