Consumer Finance Protection Bureau warning about online comparison-shopping tools

The Consumer Finance Protection Bureau has put out a warning about online comparison-shopping tools that evaluate the costs, features, and terms of many financial products, including credit cards, loans, and bank accounts. - “consumers often encounter manipulated results or digital dark patterns, fueled by behind-the-scenes incentive payments from lenders.”

The Federal Trade Commission has taken action, including a lawsuit against Credit Karma for tricking consumers with deceptive “Pre-Approved” credit offers.

Also noted in the article is that large banks are offering worse credit card terms and interest rates than small banks and credit unions, regardless of credit risk.

The CFPB is developing a consumer-facing tool that, “will bring more price transparency to credit card comparison-shopping. Consumers shopping for a credit card will have an unbiased way to compare credit card terms and interest rates.”