A Consumer Financial Protection Bureau (CFPB) report maintains
credit card debt fell to $811 billion by the second quarter of 2020, from a peak of $926 billion in 2019.
“While public and private programs helped consumers bring down their credit card debt during the pandemic, we at the CFPB will be watching to make sure families and individuals still struggling get the assistance they need,” CFPB Acting Director Dave Uejio said. “Across the credit card market, consumers sought and used less credit, paid down debt, and dropped late payment rates to historic lows. As pandemic relief efforts end, the CFPB will be using all our tools to support an equitable recovery.”
The report to Congress on the state of the consumer credit card market said total credit lines across all consumer credit cards decreased in 2020 from a high of over $4.5 trillion in 2019. Also, it found that the number of credit card applications was reduced in 2020 from peak levels in 2019, while late payment and default rates are on the decline. In addition, the report showed that consumers with below prime scores experienced the greatest constriction in available credit card lines.
CFPB seeks to ensure adequate consumer protection while also providing a transparent and competitive marketplace for consumers.