Complaints about complex credit card language weren’t missed by lawmakers, who addressed the issue to an extent when they passed the Credit CARD act earlier this year. Along with limiting the interest rates and late fees that can be imposed on a customer, the law includes new regulations on clearly disclosing the terms of an account.
Now, at least one leading credit card company has announced that it is taking another step towards ensuring that customers properly understand the terms under which they are borrowing.
According to Bank of America, it will soon begin mailing customers a one-page summary of rates, fees and other related information known as a Credit Card Clarity Commitment. About 40 million people are expected to receive the information.
Regardless of which lender a consumer has an account with, it’s crucial to read and understand the terms of all credit cards. Failure to do so can result in unexpectedly high interest rates and other unnecessary costs.
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