Congresswoman Maxine Waters, Ranking Member of the House Financial Services Committee, released the following statement in reaction to a Consumer Financial Protection Bureau (CFPB) report on the early success of the Credit Card Accountability Responsibility and Disclosure Act (CARD Act). The report finds that protections under the Act benefitted consumers by reducing unfair and excessive late fees and providing clearer disclosures about the cost of credit cards.

“Today, the Consumer Financial Protection Bureau has confirmed that we can provide consumers with strong financial protections without hurting their ability to access credit. In the years since the law was enacted, we have seen interest rate hikes substantially reduced, many unfair and excessive overdraft fees virtually eliminated and the size of late charges drop. I applaud the CFPB for implementing these rules in a manner that ensures consumers are protected, better informed and still have access to credit cards.

The CARD Act has also ensured that young consumers, particularly college students, are better protected from unmanageable credit card arrangements. Similarly, I am looking closely at the financial arrangements between colleges and financial institutions, which may lead to some students being steered into high-fee debit cards. I look forward to working with the CFPB on these important issues.

Today’s report shows how CFPB is saving consumers money and protecting them from predatory practices. Meanwhile, the irresponsibility of the Republican Party’s government shutdown continues to make its job harder. Hundreds of thousands of government employees and contractors are now furloughed - driving them deeper into debt as they struggle to make ends meet. And each day this shutdown continues risks further irreparable damage to our financial system, our economy and our middle class. It must end now.”

 

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