Credit Card Disclosure Agreements Too Confusing
Understanding the full terms of a credit card agreement is an important tool in avoiding unnecessary fees and incurring sizable debt down the road. But the latest study conducted by the Center for Responsible Lending shows Americans may have a more difficult time deciphering the disclosure information offered up by their lenders due to a significant increase in the amount of numerical data.
According to the study, numerical figures that accompany disclosure agreements have increased by 250 percent between 1999 and 2009. The report points out that at the peak of 2009, credit card disclosure details included 33 figures, providing less clarity to consumers and making agreements difficult and confusing to understand.
The complexity of the credit card may play a role in how much numerical data is included, with the most complex offers containing 6 to 8 times more figures than simple card offers.
Hidden fees, late payment costs and default interest rate hikes have previously been blamed for the large amount of debt consumers have been unable to rid themselves of, prior to the passage of the Credit Card Accountability, Responsibility and Disclosure Act. Despite new protections, millions of Americans continue to seek out debt relief initiatives to reduce their credit card debt.