Costly credit card loopholes remain
The recently signed CARD Act may have done much to ensure consumer protection from the credit card industry, doing away with late fees and other unpopular practices. However, recent research suggests consumers should still be mindful of the fine print, as there may be some loopholes left open.
Earlier this month, U.S. Senator Charles Schumer of New York urged the Federal Reserve to examine the practice of credit companies mailing business cards to individuals.
Consumers who receive the cards should be warned, as not all the protections in the new act apply to them. Thus they could unexpectedly raise your interest rate, or reap large penalties for missed payments, according to a report by the Detroit Free Press.
Bank of America recently released a small-business credit card that adopts many of the acts provisions. However, late fees remain and range up to $50.
Though analysts like Anuj Shahani, director of competitive tracking services for Synovate, a company that tracks credit card offers, does not believe that the practice of sending consumers business credit cards is widespread problem, the Detroit Free Press reports.