Financial Lobby Groups Reject CFPB's Criticism of Deferred-Interest as 'Risky'

Richard Cordray calls certain credit promotions "confusing." But business advocates contend consumers understand what they're getting.

, The National Law Journal


Top lobbying groups for the financial industry are pushing back against the Consumer Financial Protection Bureau as the regulator ratchets up pressure on credit products that can lure in customers with zero-interest terms but later surprise them with high charges.

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  • Fortune 500 GC

    Another example of the CFPB‘s complete lack of understanding of economics and the likely impact of their proposals (less access to favorable credit terms, particularly for subprime borrowers). ‘As an alternative, Cordray urged credit card companies and their partner retailers to adopt “zero-percent-interest” terms in which consumers only begin to accrue interest on whatever balance remains following the promotional period.‘ Unbelievable - sure, why not suggest interest-free loans? What bank wouldn‘t want to give those terms?

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