Consumer Financial Protection Bureau’s Consumer Credit Card Market Report

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Episode Title

Credit Card Risk, Consumer Stress, and the 18 Percent Reality

Episode Description

In this episode, Samantha Shares reviews key findings from the Consumer Financial Protection Bureau’s latest Consumer Credit Card Market Report and explains what they mean for credit unions.

The discussion focuses on how credit card usage has evolved since the pandemic, where growth is occurring, and why consumer stress signals remain elevated even as delinquency rates normalize. Samantha also explains how credit unions manage credit card risk differently from large banks, particularly given the statutory 18 percent loan-rate cap.

This episode is designed to provide practical context for credit union leaders, board members, and exam preparation conversations.

Key Topics Covered

• How large the credit card market has become and how embedded cards are in daily life
• Why recent credit card spending growth is concentrated among higher-credit-score borrowers
• What rising balances and minimum-payment behavior signal about consumer stress
• Why normalization in delinquency rates does not necessarily mean household finances are healthy
• How credit cards are increasingly used for essential expenses rather than discretionary spending
• Why smaller issuers hold a larger share of higher-risk credit card balances
• How credit unions manage credit card risk under the 18 percent loan-rate cap
• The growing importance of underwriting discipline, credit limits, monitoring, and servicing controls
• Operational risk trends, including disputes tied to recurring transactions
• How innovation, artificial intelligence, and alternative payment methods may shape future card usage

Why This Episode Matters

Credit unions operate in a high-rate environment with uneven consumer stress while serving a membership base that often includes higher-risk borrowers. Understanding how credit card risk is distributed across the market—and how credit unions manage that risk structurally rather than through pricing—is essential for strategy, governance, and exam readiness.

Sponsor Message

This podcast is sponsored by Credit Union Exam Solutions Incorporated. Their team has over two hundred and forty years of National Credit Union Administration experience and helps credit unions prepare for and navigate NCUA examinations.

Learn more at MarkTreichel.com.

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