Do you understand the terms of your credit card? The Consumer Financial Protection Bureau says studies show 2/3 of American’s don’t fully understand the terms. That’s why the Bureau is proposing changes to make it easier to understand the price of the card.
The average form now has 5,000 words of legal lingo that’s hard to understand. The new forms will have just over 1,000 words.
Pentagon Federal Credit Union will test the new forms with new credit card customers the next 2-3 months. Customers will get the new and old forms and be asked for feedback.
Consumers can also weigh in on the changes on the Consumer Financial Protection Bureau’s website.
Not sure how the new form compares to your current one? A new database on the consumer agency’s site makes it easy to find your current credit card agreement. Compare it to the new one, and let the consumer agency know what you think of the proposed changes.
