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One observer said the analysis shows that "big corporations will use any tactic they can to make an extra buck."
A report published Friday by the U.S. Consumer Financial Protection Bureau found that large banks charge customers higher credit card interest rates than smaller banks and credit unions, potentially costing consumers hundreds of dollars per year.
As required by federal law, the CFPB analyzed 643 credit cards from 156 issuers—84 banks and 72 credit unions—offered from January through June 2023 for the agency's updated Terms of Credit Card Plans survey.
"Our analysis found that the largest credit card companies are charging substantially higher interest rates than smaller banks and credit unions," CFPB Director Rohit Chopra said in a statement. "With over $1 trillion in credit card debt outstanding, the CFPB will be accelerating its efforts to ensure that consumers can access better rates that can save families billions of dollars per year."
Among the report's key findings:
"This new insight into the predatory practices deployed by big banks confirms what many customers already know: Big corporations will use any tactic they can to make an extra buck," said Lindsay Owens, executive director of the progressive think tank and advocacy group Groundwork Collective.
"Thankfully," Owens added, "CFPB has already stepped up to take on the credit card industry by clamping down on misleading rewards programs and working to ban the junk fees that only serve to disproportionately harm low-income people."
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A report published Friday by the U.S. Consumer Financial Protection Bureau found that large banks charge customers higher credit card interest rates than smaller banks and credit unions, potentially costing consumers hundreds of dollars per year.
As required by federal law, the CFPB analyzed 643 credit cards from 156 issuers—84 banks and 72 credit unions—offered from January through June 2023 for the agency's updated Terms of Credit Card Plans survey.
"Our analysis found that the largest credit card companies are charging substantially higher interest rates than smaller banks and credit unions," CFPB Director Rohit Chopra said in a statement. "With over $1 trillion in credit card debt outstanding, the CFPB will be accelerating its efforts to ensure that consumers can access better rates that can save families billions of dollars per year."
Among the report's key findings:
"This new insight into the predatory practices deployed by big banks confirms what many customers already know: Big corporations will use any tactic they can to make an extra buck," said Lindsay Owens, executive director of the progressive think tank and advocacy group Groundwork Collective.
"Thankfully," Owens added, "CFPB has already stepped up to take on the credit card industry by clamping down on misleading rewards programs and working to ban the junk fees that only serve to disproportionately harm low-income people."
A report published Friday by the U.S. Consumer Financial Protection Bureau found that large banks charge customers higher credit card interest rates than smaller banks and credit unions, potentially costing consumers hundreds of dollars per year.
As required by federal law, the CFPB analyzed 643 credit cards from 156 issuers—84 banks and 72 credit unions—offered from January through June 2023 for the agency's updated Terms of Credit Card Plans survey.
"Our analysis found that the largest credit card companies are charging substantially higher interest rates than smaller banks and credit unions," CFPB Director Rohit Chopra said in a statement. "With over $1 trillion in credit card debt outstanding, the CFPB will be accelerating its efforts to ensure that consumers can access better rates that can save families billions of dollars per year."
Among the report's key findings:
"This new insight into the predatory practices deployed by big banks confirms what many customers already know: Big corporations will use any tactic they can to make an extra buck," said Lindsay Owens, executive director of the progressive think tank and advocacy group Groundwork Collective.
"Thankfully," Owens added, "CFPB has already stepped up to take on the credit card industry by clamping down on misleading rewards programs and working to ban the junk fees that only serve to disproportionately harm low-income people."
