Some credit card issuers may send out offers with enticing rates, but one case in California that added credit card debt to a consumer’s account underscores the importance of making sure to know the ins and outs of the introductory deal before signing up.
According to a report from San Jose television station KGO, one local consumer got a credit card offer from US Bank that promised no interest for a year, no annual fee and no balance-transfer fee. He then called the bank and asked if there was also an interest rate on balance transfers, and was told there wasn’t. So he opened the account and transferred $5,200 from another card.
A month later he got his statement, saying there was a 13.24 percent interest rate on the account and $53 added to the total, the report said. Despite calls to the bank, he couldn’t get the amount erased until the station stepped in on his behalf.
The Credit Card Accountability, Responsibility and Disclosure Act requires that all the terms of a credit card offer are listed clearly by the lender.