WASHINGTON–The Consumer Financial Protection Bureau has sent letters to the nation’s biggest credit card companies with questions over why they are not regularly providing data to credit bureaus on the actual monthly payments their borrowers are making.
The CFPB said its research showed half of the largest credit card companies contribute data to credit reporting companies related to the exact monthly payment amounts made by borrowers.
The Bureau said its research further showed that over a short period of time, several of the largest credit card companies began to suppress actual payment amount information that they had previously provided or furnished about consumers.
Suppressing payment data, the Bureau stated, has potential for harm as it may impact consumers’ ability to access credit at the most competitive rates. The CFPB said consumers must rely on the reporting of the data to receive competitively-priced credit based on their ability to manage and repay their credit obligations.
“By suppressing payment amount data, lenders’ ability to competitively underwrite credit may also be hindered,” the CFPB said.
Letters Sent to CEOs
The CFPB said it sent letters to CEOs of J.P. Morgan Chase, Citibank, Bank of America, Capital One, Discover and American Express with questions related to practices and the reasons to change their policies.
In the letter, the CFPB is asking five questions seeking information over why the companies may have provided payment data since 2012 but no longer do — or, if the company has never regularly or consistently provided data since 2012, to explain the "rationale” for that practice.
In addition, the CFPB is also asking the companies about any plans to start providing actual payment amount information, and how quickly and accurately they could furnish it.
“Today, the practice of withholding information about consumer credit card payments is even more out of step with market and regulatory trends,” said the CFPB.
The Bureau is requesting the companies provide 30 days for the companies to answer in writing.