[CFPB] Report Finds Credit Card Companies Charged Consumers Record-High $130 Billion in Interest and Fees in 2022

CFPB Report Finds Credit Card Companies Charged Consumers Record-High $130 Billion in Interest and Fees in 2022

“Last year, Americans paid $130 billion in interest and fees on their credit cards," said CFPB Director Rohit Chopra. "With credit card debt crossing the trillion dollar mark, we will be working to prevent bait-and-switch tactics when it comes to rewards and to increase refinancing activity so consumers can get lower rates.”


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People leveraging right before the rug pull is my guess. On a different note Goldman changed their housing forecast (like for the 3rd or 4th time) saying 2024 about to blow the housing numbers through the roof. Things are going up, at least in the short term.

Admin/Mod Note:

This topic is related to selling on multiple platforms as most sellers use CC’s to not only run their accounts but also purchase supplies and/or inventory. This is a friendly reminder that this topic is not to be considered political and lets please keep this topic on track and as per SAS policy

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This article’s kinda BS, because interest rates are up, massively, across the board. I’d be shocked if interest and fees WEREN’T at an all time high.

Anyway, if you’re the type to hold credit card debt and pay interest on it over a long period of time, it’s always a good idea to see if you can obtain some kind of financing that’s cheaper (which is almost anything). And check your rates! Basically all credit card financing rates are adjustable, which means they’re probably up from the last time you checked.

This posted link is just a summary of the entire CFPB required 2023 report to Congress.

Under the Credit Card Accountability Responsibility and Disclosure Act (CARD Act), the CFPB regularly reviews developments in the credit card market. Today’s report, the CFPB’s sixth, identified several recent trends in consumer credit card activity

The full 2023 report is available here:

This study represents the CFPB’s sixth biennial report on the state of the consumer credit card market and continues the approach of the CFPB’s previous reports. The CFPB revisits similar baseline indicators to track key market developments and consumer risks as well as the adequacy of consumer protections. Throughout this report, we continue to examine trends by card type and credit score tier, but further segment consumers with the highest scores into two new groups, prime plus (720 to 799) and superprime (800 and above). In a new section, this report examines the market structure, concentration, and profitability of the credit card industry in detail, complementing other regulators’ examination of the safety and soundness of card issuers. We explore new topics that have become more important as the market continues to evolve. For example, the current report explores the prevalence and cost of installment plan features and the dollar value of credit card rewards. Additionally, we discuss issuer practices related to dispute resolution, minimum payments, and servicemember rate reductions.

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Yeah, but they sensationalized the title, when the title is really just something that should be obvious.

Personally, I read it as simply announcing the new record, which is relevant and newsworthy–not sensationalizing. It’s an actual big deal, with a lot of consequences and implications for consumers, businesses who use credit cards themselves, and retailers. :woman_shrugging:

But you are certainly entitled to your own different opinion, though my general unsolicited advice is to not rely solely on titles (or summaries) to form opinions.

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I tend to find all these ‘reports’ and ‘studies’ to be nothing more than a comment on the OBVIOUS.

Fees are the same or higher per dollar of debt and we now have RECORD credit card debt. In other words, the obvious has happened.

If credit card debt declines whether through being payed off or, more likely, default and bankruptcy, the level of charges will result in stories that will detail the shocking news that the fees have declined.

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Sometimes it is good to reflect on the obvious.

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