Credit Card Compliance: What You Need to Know

Ensuring marketing compliance and consumer protection in today’s regulatory environment is critical for credit card issuers.

In this blog post, we’ll cover the basics of credit card compliance, why it’s important, and how to mitigate compliance risk across consumer marketing channels.

How can credit card issuers monitor for TILA on partner sites?

To monitor for TILA (Truth in Lending Act) compliance on partner sites, a credit card company can use a compliance monitoring technology, such as PerformLine, that can scan partner sites to ensure that they are disclosing required TILA information, such as annual percentage rate (APR), finance charges, and fees. The technology can also monitor for changes to the partner sites and alert the credit card company if any TILA-related information is added or removed.

How can credit card issuers monitor for changing APR rates across advertising and partner network?

To monitor for changing APR rates across advertising and partner networks, credit card issuers can use a combination of automated tools and manual review processes.

Automated tools such as compliance monitoring software can scan partner websites and advertising materials for changes to APR rates, ensuring that they remain within regulatory limits. These tools can also track changes to disclosures and other key information to ensure compliance with all relevant regulations.

Credit card issuers can also use manual review processes to check partner materials and advertising for accuracy, including reviewing partner contracts, periodic audits of partner websites and marketing materials, and ongoing communication with partners to ensure that any changes to APR rates or other key information are properly disclosed.

What are the credit card compliance regulations and requirements when it comes to marketing and advertising?

Some key regulations and compliance requirements for credit card issuers include:

• Truth in Lending Act (TILA) which requires clear and accurate information about the costs associated with credit products
• Schumer Box disclosures 
• Regulation Z which specifically addresses open-ended credit plans
• Credit Card Accountability Responsibility and Disclosure (CARD) Act that requires clear and conspicuous disclosure of terms and conditions, restrictions on the marketing of credit cards to college students, and limitations on fees and interest rate increases
• FTC Act that prohibits unfair or deceptive acts or practices in marketing and advertising

What are the best practices for credit card marketing compliance?

Some best practices for credit card companies to ensure marketing compliance includes:

• Provide clear and transparent disclosure of all fees, rates, and terms associated with credit products
• Avoid any deceptive or misleading practices that could mislead or confuse consumers
• Ensure that all marketing and advertising practices comply with all applicable laws and regulations, including the Truth in Lending Act, Regulation Z, and the Credit CARD Act
• Regularly monitor and audit their marketing and advertising practices to ensure that they are in compliance with all applicable laws and regulations
• Ensure the APR rate(s) are up-to-date

PerformLine: The Trusted Platform for Credit Card Compliance

PerformLine’s omni-channel compliance monitoring solution was built to automate the monitoring and remediation of regulatory and brand compliance violations, on all internal and external channels including web, messaging, calls, email, documents, and social media. Our turn-key industry rulebooks are built on years of experience working with regulators and industry clients.

Speak to one of our experts today to learn more about mitigating risk and ensuring brand safety.