Home > Credit Cards > GAO Report on Credit Card Practices
GAO Report on Credit Card Practices |
|
Government Accountability Office released its study of the credit card industry in September of 2006. This report supports the position that credit card companies charge fees that are too confusing for a vast majority of consumers to easily understand. The GAO report found that often-critical information was hidden in small text and imbedded in long tracts of text. In addition, much of this information was written at the level of a lawyer employing the use of wording that is common in the legal profession, but whose meaning is not intuitively obvious to persons not trained in law. Credit card companies acknowledge that the disclosure of difficult contractual items is not easy to convey in simple terms. However, consumer groups feel that this is deliberate deception that will ultimately end up increasing the number of consumers who will need to undergo credit report repair. It isn't a secret that the credit card companies check your credit report when you apply for a credit card. It is not widely known that credit cards continue to check your credit report periodically to ensure that you do not become a credit risk. This means that if you fall behind on one credit card, the other credit cards are likely to increase their rates because you have become an increased risk. And, before too long it evolves to a point where the consumer is turning to predatory credit repair services. The new interest rate can often double or triple. Of course the higher charge is retroactive and applies to charges that already exist on your credit card. The credit card companies defend this practice by explaining that they have to protect their assets. If you become a larger risk, they must raise the rates to compensate for the increased risk of the transaction. Another tactic often used by credit card companies is that they have very confusing billing cycles. This practice makes it easy to throw consumers off and allow them to end up in a situation where they are paying punitive fees. It is important to keep on top of these things so that you don't end up in a situation where credit repair services become necessary. Also, if you check your credit report regularly, you can identify if any credit card companies are publishing negative information regarding your repayments. Credit Card Applications by Daniel Wesley |
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
|
|
|
|
| ------------------------ |
|---|
|
| ------------------------ |
|---|
Custom Search
|
| ------------------------ |
|---|
|
|
| ------------------------ |
|---|
Consumer Alerts | About | Bookmark Us | Contact | Espanol | Privacy Statement | Copyright | Terms & Conditions | Financial Widgets | SiteMap
Copyright © 2006 Credit Loan, LLC. 235 APOLLO BEACH BLVD, STE 218 Apollo Beach, Florida 33572 All rights reserved.
Disclaimer: The content provided on CreditLoan.com is for informational purposes only; do not make any financial decisions based on its content. Financial decisions are personal, based on an individual's situation. Consult with a financial professional before making any financial decisions. CreditLoan.com is not liable for your financial actions.
