ABA commits to credit-card improvements

Testifying before the House Financial Services Committee, ABA President and CEO Ed Yingling addressed how competition continues to improve credit card products and described efforts to improve disclosures and enhance consumer education programs.

Yingling noted that for many Americans, credit cards provide many services at little to no cost, sometimes at historically low interest rates.

“But for some individuals, the increased complexity causes confusion and they end up in a difficult financial situation,” he said. “We take these concerns very seriously and we are working to address them.”

Yingling cited a variety of industry initiatives to make credit card disclosures better and clearer, as suggested by a recent Government Accountability Office report.

Among the initiatives are the Federal Reserve’s new disclosures and ABA’s information tools for consumers, both of which are now in development.

“Recently, individual institutions announced important changes to their policies,” Yingling said. “We see how competition leads to streamlined and simplified practices. We recognize policies that alienate some of (our) customers, or lead individuals into financial difficulties, are in no one’s interest.”

In his final point during testimony, Yingling discussed the banking industry’s ongoing commitment to consumer education.

“Every major credit card issuer has an education program,” he said. “Now ABA is working to maximize the delivery of these programs to consumers, with a particular emphasis on college-age individuals.”