Towards More Effective Consumer Credit Disclosures
Last September, I reviewed Ronald Mann’s Charging Ahead. As I mentioned at the time, Mann discussed the policy implications of credit cards.
He went on to suggest enhancements to regulations such as creating more uniform cardholder agreements, shifting disclosures closer to the point of sale, eliminating rewards programs and mandatory minimum repayment levels.
The Federal Reserve has since acted on cardholder agreements and disclosures and are looking at such things as the format of disclosures (a simple table of key terms vs. dense fine print), a longer notice period of rate changes and rules on when the term “fixed” can be used. This is covered in more detail in the remarks by the Federal Reserve’s Governor Randall S. Kroszner in his speech on Creating More Effective Consumer Credit Disclosures.
