The Fair Credit and Charge Card Disclosure Act states that credit card companies must provide information about their terms, Annual Percentage Rates, annual fees, cash advances and any other fees to the consumer. Some cards charge different APRs for cash advances and purchases and the card issuers must disclose this information in writing when the consumer applies for the card.
With pre-approved credit solicitation, credit card companies must include a written set of their terms and must inform customers of any changes they make in rates or credit insurance coverage changes. This act helps the consumer by providing full disclosure of the terms, fees, interest rates and other features of the credit card they apply for or use.
If you’re wondering why there’s so much information on your credit card billing statement, it’s because of The Fair Credit and Charge Card Disclosure Act, which is in place to protect you. Creditors must provide you with certain information on a regular basis and this information is valuable to the consumer.
Examples of the information card issuers must include with any credit card statement or pre-approved offer include:
- Annual Fee or Yearly charge for using the card
- APR or Annual Percentage Rate charged
- Monthly periodic rate, which is the APR divided by 12
- Daily periodic rate, which is the APR divided by 365
- Late payment fees
- Over the limit fees
- Grace period
- Minimum payment
- Transaction fee
- Finance charge
As a consumer, you need to make sure you verify your monthly statement every month. This helps to protect you and keep you in control of your finances. Since this act forces the credit card companies to give you all the information you need, there shouldn’t be any more surprises. For more information about The Fair Credit and Charge Card Disclosure Act, go here.
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