The Proposed Regulation of Bureau of Consumer Financial Protection

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Proposed Regulation 1 Proposed Regulation The Bureau of Consumer Financial Protection is designed to protect consumers from abuse by financial issuers. This proposal would affect every consumer in regards to opening a credit card account, or even trying to change credit card issuers. If, for whatever reason, a consumer decides to open a credit card account, this proposal could cause them to have to pay higher costs just to open an account than what it would currently cost. Regulation Z currently limits the amount of fees an issuer can charge for a consumer to open a credit card account to 25% of the credit limit. It currently applies to prior to the current year and the first year of the open account. The Bureau is proposing to change Regulation Z to only apply to the first year of the open account and exclude the prior to current year requirement. (Docket ID: CFPB-2012-0015) This means there would be no limits set on fees charged to actually open the account. The limitations would only apply to the first year after the account is opened. The public comment would be: Without limitations being set, it would be an open door for abuse from issuers on consumers. The setting of limitations allow for fairness in the market place and to protect consumers from financial abuse in regards to issuers protecting their bottom lines. The limitation on the prior year would protect the amount the consumers would have to pay for the initial opening of the account and create a better

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