Would a Credit Card Bill of Rights Ultimately Help or Harm Consumers?

• “Help”

  

  “Act Would End Bait and Switch Contract Clauses”

• No Objections Yet

Act Would End Bait and Switch Contract Clauses

Consumer Federation of America

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Currently, credit card companies can reserve the right to change the terms of a credit card contract at any time and for any, or no, reason.  As a result, credit card companies can arbitrarily subject credit cardholders to rising interest rates, even those with perfect credit histories.  The Bill of Rights Act would require credit card companies to disclose, up front, the specific reasons for why there would be a change in contract terms.

Evidence

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The Worst Credit Card Deals in America

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Credit Card Practices

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"Help" CFA

• Act Would End Bait and Switch Contract Clauses
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• Cardholders Would Not Pay Interest on Debt Already Paid Off
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• Issuers Would Have to Fairly Apply Payments to Card Balances
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• Prohibits Retroactive Application of Rate Hikes for Consumers
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• Act Curbs Late-Fee “Gotcha” Tricks
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"Harm" AFSA

• Policymakers Need to Look at the Big Picture
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• The Right Numbers Tell a Different Story
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• Price Controls are Not the Way to Go
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• Risked-Based Pricing Benefits the Customer
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"Harm" CEI

• The Market Provides Abundant Choices
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• The Poor—and Those With Bad Credit—Would Suffer Most
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• Deregulation Provides the Best Path to a Better Consumer Experience
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Most Objections

Do We Need Credit Card Rights?

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