Credit Card Agreement Problems and Resolutions
If you are unable to understand your credit card’s fine print, you are not alone!
A recent report found that credit card agreements, in general, are written on a 12th grade reading level, thereby making them difficult to read for four out of five adults.
Unfortunately, many adults are unable to read and understand standard credit card agreements, and some experts believe that credit card companies fully understand this and continue to write the agreements in difficult language for that very reason.
Understanding the Fine Print
As credit card consumers, we are told, time and time again, that we must carefully read our credit cards fine print so that we have a good understanding of the terms and conditions and whether they suit our budget. However, what do we do when we simply can’t fully understand the card’s fine print?
A good rule of thumb if you can’t decipher your credit card’s fine print is to simply pick up the phone and demand an explanation. If you find that the credit card company isn’t willing to take the time to explain the card’s terms and conditions in language that you can understand, it is best to move on and close the account. It just doesn’t make sense to become caught in a credit card agreement that you can’t understand.
In addition, many people are turning to credit counselors to help weave them through the complexities of credit card terms and conditions.
A Bright Spot on the Financial Horizon
For many consumers, welcome changes are on the way. A new Consumer Financial Protection Bureau, which was signed into law by President Obama as part o the Wall Street reform package, will have the power to mandate credit card contracts. What does this mean? Plain English terms and conditions that will allow the majority of credit card holders to understand them.
The main point of the Consumer Financial Protection Bureau is to allow individuals to make the choices that are best for them. And to do that, they need to understand the contracts they are entering into. The agency will help improve financial awareness for consumers across the country and help them process the information so that they can make the best, possible decisions regarding their finances.
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