Consumer Bureau Tool Helps Promote Credit Card Price Competition

Advocate Andy

Website offers consumers insight into interest rates, fees in order to provide price transparency

The Consumer Financial Protection Bureau (CFPB) announced an improved website designed to help consumers shopping for the best deal on a credit card.

The updated website allows for comparison of credit card costs - including interest rates and fees - and is designed to increase competition in the credit card marketplace.

The CFPB notes that American consumers pay $120 billion in credit card interest and fees each year.

“Given the rise in interest rates, the CFPB has modernized how it collects credit card data to spur competition and help families use products with lower rates and fees,” said CFPB Director Rohit Chopra. “These improvements will also give smaller relationship banks that offer better terms and better service another way to compete against the dominant credit card companies.”

The improvements to the CFPB’s semiannual terms of credit card plans survey are intended to create a neutral data source to help consumers find the best interest rates and products. Currently, consumers can run into many obstacles when shopping for credit cards, including that many big issuers make it difficult for consumers to estimate the interest rate they will pay. The data from the survey also can power digital tools and websites that people can use to find the best products for them, regardless of company size or marketing budget.

In a time of rising inflation and an attendant increase in interest rates across borrowing products, the improved CFPB comparison site is a tool that allows consumers to have accurate information in order to make informed choices.

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Andy Spears is a middle Tennessee writer and policy advocate. He reports on news around public policy issues - education, health care, consumer protection, and more.

Nashville, TN

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