ADVERTISEMENT

ABA says card industry responding to criticism

By

Speaking before a U.S. House panel on April 26, 2007, the head of the American Bankers Associations said that the credit card industry is responding to criticism from the government and disgruntled consumers.  The industry has come under fire from both groups, who are seeking new standards for issuers they say bury borrowers in debt.

Compare Low Interest Credit CardsABA head Edward Yingling reported to the House Financial Services Committee that the ABA's Card Policy Council, whose members include the major credit card issuers, is meeting weekly in an effort to create fresh industry disclosure standards. 

These new standards would help consumers understand and avoid expensive credit card penalty fees, Yingling explained.

He added that the credit card industry is reacting to recent congressional criticism that many cardholders end up stuck in debt due to unfair fees and interest rates. 

Yingling noted that the industry is aware that it is in no one's interest to have policies that alienate some customers or drive consumers into financial hardship from which they cannot break free.

Meanwhile, the Federal Reserve is undertaking revisions for regulations governing credit cards disclosure statements.

Separately, Yingling said that delinquency rates for credit card payments have remained steady in spite of fears that could increase amid U.S. consumer defaults on sub-prime mortgages.  In theory, credit card delinquencies should rise ahead of mortgage defaults, since the ABA says that consumers usually opt to be late on unsecured loans prior to an auto or home loan.

To comment on this story, write Editors@CreditCards.com.

More credit card news.

Published: May 14, 2007


Join the discussion
We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.




Follow Us


Updated: 09-30-2016


Weekly newsletter
Get the latest news, advice, articles and tips delivered to your inbox. It's FREE.


ADVERTISEMENT