Senators ask for greater disclosure on business credit cards
In an effort to encourage borrowers to begin taking on credit card debt again, many lenders are now sending out more offers for business accounts. However, some U.S. Senators say institutions don’t do enough to let people know about how these accounts differ from those for consumers.
Four Democratic U.S. Senators recently asked the Federal Reserve Board to begin requiring credit card lenders to clarify that business credit cards are not covered by the same regulations as those for consumers, according to a report from Dow Jones Newswires. U.S. Senators Charles Schumer of New York, Jack Reed of Rhode Island, Bill Nelson of Florida and Robert Menendez of New Jersey co-wrote the letter to Federal Reserve Chairman Ben Bernanke.
“While we are encouraged some banks, such as Bank of America and Capital One, have taken voluntary steps to protect consumers, we are very concerned issuers are marketing these products to ordinary consumers who may not realize they do not offer the same protections as personal cards,” the senators wrote, according to the news service.
It was originally thought by lawmakers that extending consumer protections to business accounts was overregulation, and not included in the Credit Card Accountability, Responsibility and Disclosure Act.