In preparing this proposal, we conducted extensive consumer testing to determine the type and format of information that consumers find most useful in shopping for and choosing a credit card. This extensive consumer testing – and the thousands of public comments on our proposal – suggested that disclosures may not provide sufficient consumer protection with regard to certain practices.
Therefore, we recently proposed rules under the Federal Trade Commission Act to protect consumers from financial harm caused by those practices. If implemented, the proposed rules would require financial institutions to make changes to their business models and to alter some practices. The Federal Reserve developed this proposal jointly with the Office of Thrift Supervision and the National Credit Union Administration.