Debate: Police those credit cards

Source: BusinessWeek

Via the Credit Cardholders’ Bill of Rights, the U.S. should regulate the industry to protect consumers from sudden rate increases such as those recently imposed by Bank of America, which more than doubled rates for certain cardholders. Pro or con? Pro: Fine Print Is Useless by Karen Gross, Southern Vermont College The recent instances of credit card companies raising interest rates without apparent reason and then offering cardholders a tiny window within which to repay at the old rate are a perfect example of why disclosure is a flawed paradigm for consumer protection. For more than 50 years, we have assumed if consumers were made aware of their loan terms (however onerous and convoluted), they could make informed decisions. Disclosure was a way of saying: Caveat emptor.

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