Feds Push For Simpler Credit Card Mailings!
Confused by the fees and terms of your credit card? The Federal Reserve wants to make your monthly bill and solicitations that arrive in your mailbox easier to understand.
The Fed wants companies to give people 45 days’ notice before making any changes to the terms of an account, including slapping on a higher penalty rate for missing payments or paying bills late.
Under current regulations, credit card companies in most cases provide 15 days’ notice before making certain changes to the terms of an account, the Fed said. However, under current regulations creditors need not inform a consumer in advance if the interest rate to an account increases due to default or delinquency.
The extra time would give people an opportunity to pursue their options, including switching to another credit card provider.
“The goal of the proposed revisions is to make sure that consumers get key information about credit card terms in a clear and conspicuous format and at a time when it would be most useful to them,” Fed Chairman Ben Bernanke explained Wednesday.
The Fed’s proposal would call for a table summarizing the changes to appear on the statement above the list of the consumers’ transactions. That’s where people are most likely to notice the changes, the Fed said.
From solicitations to monthly statements, the Fed’s proposal would require key information appear in larger print, with rates and fees in an easier-to-see boldface.