Monday, November 02, 2009
The nation’s largest banks continue to use credit card policies considered “unfair or deceptive” by the federal government, according to a new report by the Pew Charitable Trust. With many of the provisions of the Credit CARD Act not going into effect until February or later next year, credit card issuers are attempting to deceive consumers until the new restrictions kick in.
The report states that “practices labeled ‘unfair or deceptive’ by the Federal Reserve remained as widespread as they were before Congress passed the new credit card law. In fact, some of these practices had become even more common.”
A survey of 400 credit cards offered by the largest 12 bank and 12 credit unions found that median advertised interest rates on bank credit cards were between 13% and 23% higher compared to rates in December of 2008. Pew researchers also discovered that 99.7% of bank cards had policies allowing the issuer to unilaterally raise interest rates on outstanding balances.
-Noel Brinkerhoff
Executive Summary: Still Waiting: “Unfair or Deceptive” Credit Card Practices Continue as Americans Wait for New Reforms to Take Effect (Pew Charitable Trust) (PDF)
Still Waiting: ‘Unfair or Deceptive’ Credit Card Practices Continue as Americans Wait for New Reforms to Take Effect (Pew Charitable Trust) (PDF)
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