The credit card regulation reform was passed in December 2008 by the federal banking industry. The goal was to give more power back to the people.
Edward Jones Investments representative Steven Elder explained the change would help people get a better handle on their finances.
“This will be a good thing for consumers,” Elder said. “People will know what their fees are, and how much interest they are being charged.”
Credit card companies will now be required to give consumers a 45-day notice on statements before changing interest rates on cards. Currently it is only 15-days.
Previous credit card disclosures were required to show key terms listed in a table, include them in credit card offers, applications and statements. The new standard will do the same thing, but will show these things in much more detail.
Some of the examples are making the statement easier to read, the amount of service fees being paid out by the consumer, and a detailed transaction history.
“It will an easier way for people to understand,” Elder replied, “what entails their credit card, and the things inside it.”
Credit card issuers must change statements by July 1, 2010, but Elder felt that some may change them sooner.
CreditCards.com explained during a consumer test that users were confused about wording on statements, the type being too small, and key information missing from monthly statements.
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