The American Bankers Association yesterday urged the Consumer Financial Protection Bureau to use its authority to update outdated disclosure rules to meet the needs of consumers and facilitate seamless digital payment experiences. The comments—filed in response to the CFPB’s biennial CARD Act request for information regarding the consumer credit card market—emphasized that current rules were written in the age of paper and postal mail and now create friction for consumers on digital devices.
ABA also noted that credit card issuers are proceeding carefully in considering how to use artificial intelligence. Key emerging use cases for AI include faster and more accurate credit decisions, which have the potential to increase financial inclusion, improve the customer experience through chatbots and virtual assistants; and identify and stop fraud more quickly.
Since the CFPB’s last report in 2017, interest rates have moved consistently with the rising federal funds rate. Subprime account openings have bounced back somewhat, but they remain lower than before the CARD Act was enacted in 2009, ABA said. For more information, contact ABA’s Nessa Feddis or Brian Murphy.