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Overview
It is widely known that the Federal Communications Commission (FCC) regulates what is said on radio and television. The Food and Drug Administration (FDA) regulates the food and medicines that we ingest. The Federal Aviation Administration (FAA) regulates civil airports and air traffic. What is not widely known is who regulates the credit card industry, the industry responsible for those ubiquitous, little plastic cards that shoppers carry everywhere.
Credit Cards are Loans Provided by Financial Institutions
U.S. shoppers love credit cards. A U.S. consumer is almost just as likely to whip out a card to pay for purchases as he is to whip out cash. For some, credit cards are the main financial vehicle. Some people pay for all of their purchases with plastic and, before the end of the month, pay off the bill in full. In this way, no balance is carried and no interest fees are incurred. But credit cards, as implied by the name, are not money--they are loans. These short-term loans, or lines of credit, are usually provided by financial institutions. The regulating body of any particular credit card will fall under the umbrella of the regulator of the card-issuing financial institution.
Banks and Credit Unions
The majority of credit cards are issued by either banks or credit unions. If a bank or credit union is nationally chartered, it falls under the jurisdiction of two separate regulatory bodies:
Office of the Comptroller of the Currency
The Office of the Comptroller of the Currency is the regulating body for nationally chartered banks in the United States. If your credit card issuer is a nationally chartered bank (the majority are), the OCC is in charge. The Office of the Comptroller of the Currency is part of the Department of the Treasury. The OCC was established in order to ensure a competitive and stable national banking system. Among other things, OCC examiners analyze nationally chartered banks' investment portfolios, loans and ability to identify and control risk. Do you have a complaint or question about your national bank? The OCC has a consumer help-line: 1-800-613-6743.
National Credit Union Administration
If your credit card issuer is a nonprofit federal credit union, the regulating body is the National Credit Union Administration. Congress created a national regulatory body for nonprofit credit unions in order to "promote thrift" (saving) and to "thwart usury" (interest fees). The NCUA is to nationally chartered credit unions as the OCC is to nationally chartered banks. The NCUA has a consumer help line: 1-800-755-1030.
Caveat
This article is meant only as general information on the subject and might not adequately answer all of your specific financial concerns. As with any financial advice, be certain to contact a financial professional about your individual financial questions.
