The Consumer Financial Protection Bureau will soon begin requiring that credit card lenders clearly state the exact interest rate they will charge to applicants, and how much credit they are allowed to take out, according to a report from The Associated Press. Further, it will attempt to make it easier for Americans to compare rates and limits before completing an application process.
“When the costs and risks of a credit card are clear, consumers generally will make wise decisions about borrowing,” David Silberman, the assistant director for card markets for the new CFPB, told the news agency.
Further, the CFPB is going to work on making it easier for consumers to understand their financial obligations with new lending agreements, as many currently don’t list all terms in the legally required “Schumer boxes,” the report said.
The CFPB, which will not gain full regulatory power until July, still does not have a director appointed to run it at this time.