CFPB Warns Marketers of Credit Cards!

The Consumer Financial Protection Bureau (“CFPB”) has sent out a warning to credit card companies that marketing false interest-rate promotions is now on their target list for enforcement actions. The CFPB issued a bulletin that some companies luring in consumers with offers of zero or low interest for a specific purchase or balances transferred from another credit card, and then hitting consumers with surprise interest charges is about to become the subject of targeted investigations. The bulletin released on September 5th puts credit card issuers and their marketers on notice that the costs and risks of these promotional offers must be clearly disclosed so consumers understand what they are signing up for. “Credit card offers that lure in consumers and then hit them with surprise charges are against the law,” said CFPB Director, Richard Cordray. “Before they sign up, consumers need to understand the true cost of these promotions. Today, we are putting credit card companies on notice that we expect them to clearly disclose how these promotional offers apply to consumers so that they can make informed choices about their credit card use."