Credit Cards Not Always Clear on Penalty Rates

Publication: Associated Press

Author: Candice Choi


07/22/2010 - A late credit card payment will cost you. It's just not always clear how much.

Despite new reforms that require more transparent billing practices, about half of credit cards do not disclose in marketing materials the penalty interest rates customers can incur.

Penalty rates can be as high as 29.99 percent. That's on top of the $39 fee a late payment often triggers.

...

A study by the Pew Safe Credit Cards Project found that card issuers are complying with a new law this year that prohibits numerous deceptive practices. Previously, all card issuers tracked by Pew used at least one practice that is now illegal.

Read the full article, Credit Cards Not Always Clear on Penalty Rates on the Boston Globe's Web site.

Pew is no longer active in this line of work, but for more information visit the Safe Credit Cards Project on PewHealth.org.

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