Simpler credit-card agreement language could be on the way
In recent months, consumers have become more weary of credit card use, choosing to pay with checks, cash and debit cards to avoid debt.
However, credit card applications may soon be more transparent, if Elizabeth Warren, the recently appointed head of the Consumers Financial Protection Bureau, has her way.
“No customer should be asked to take out a loan without knowing the costs or the risks of the deal,” she said in a speech to the Consumer Federation of American on Thursday. “And every customer should be able to compare different financial products straight up.”
In the speech, Warren talked at length about complex pricing schemes and their influence on consumer credit card debt. She also said clear language in financial agreements could go a long way toward preventing Americans from becoming embroiled in bad credit contracts.
In addition, Warren chided lawmakers seeking to roll back consumer protections in the recently passed CARD Act. She said taking on credit card and mortgage company contracts would be one of her first priorities as head of the bureau.