What your Credit Card Company must Disclose to you
The new credit card legislation that was recently enacted by Congress is designed to protect consumers from unscrupulous practices by credit card companies. One of the requirements under the new law is that credit card companies must disclose rules for solicitations, agreements and period billing statements to consumers.
The “small print” that must be disclosed must also be disclosed in an easy-to-read, easy-to-understand format. Here are some of the highlights of the new disclosure rules:
- Credit card offers must be easy to read. The fees of the credit card, along with the credit card’s APR, must be boldly displayed on the offer. In addition, the APR of the credit card must be displayed in at least a 16-point font. Any related credit card fees must be shown in an easy-to-understand table.
- If you apply for a credit card and are approved, the credit card company must send you a one-page agreement summary detailing the card’s terms and conditions. Although you will still likely receive the lengthy credit card summary you normally receive, the key terms will be highlighted on the one-page agreement summary.
- Your credit card statement will also be much easier to read. Large boxes on the front of the credit card statement will provide you with important information, including your account activity summary and your payment information. Other information that will be displayed prominently will include your new balance, the due date, the statement closing date, you previous payments and credits, and your minimum payment information.
- Your credit card company will also be required to provide you with a minimum payment warning that will show how long, and how much it will cost, to pay off your balance if you only pay the minimum payment. This may be a vital component to your credit card statement, as it will really detail the amount of money it will cost you if you only continue to pay the minimum payment on your card. This information must also be displayed prominently on the first page of your credit card statement.
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