New report shows credit card policies can cause “monetary harm” to consumers
Pew Charitable Trusts Report
Pew Charitable Trusts, a nationally recognized not-for-profit organization in Philadelphia, has released a 2007-2008 comprehensive study of the abusive practices of the credit card industry.
Over 400 cards likely to cause ‘monetary injury’
The year-long study, covering over 400 credit cards, found that 100 percent of the cards allowed the issuer to apply payments in a manner which, according to the Federal Reserve, is likely to cause substantial monetary injury to consumers. 93 percent of cards allowed the issuer to raise any interest rate at any time by changing the account agreement.
After careful analysis, PCT concluded that:
- Current credit card practices place American cardholders at risk of sudden, potentially drastic price increases which can seriously impair a household’s stability and spending power.
- Credit card issuers’ profitability can be sustained with the adoption of transparent and predictable pricing practices.
- Strong, universally applicable laws provide the surest means of protecting cardholders and eliminating pressures for issuers to compete through unfair and deceptive practices.
For more on the Pew Charitable Trust’s report, click on http://www.pewtrusts.org/our_work_report_detail.aspx?id=50550. Read the full report at http://www.pewtrusts.org/our_work_report_detail.aspx?id=5055.
We Can Help
If you need help with your credit card debt and don’t know where to start, contact the experts at National Debt Assistance at (866) 551-4632.
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