The Nation; Writing New Rules for the Credit-Card Game
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TOUGH new rules on what credit-card companies must tell their customers became law in New York State last month, but they may not be on the books for long. Representative Charles E. Schumer wants to pre-empt them with Federal regulations that some consumer groups say are less stringent. TOUGH new rules on what credit-card companies must tell their customers became law in New York State last month, but they may not be on the books for long. Representative Charles E. Schumer wants to pre-empt them with Federal regulations that some consumer groups say are less stringent. The bill sponsored by the Brooklyn Democrat would force companies to tell consumers more than most states now require about fees, interest rates and other financial details. The idea is to let consumers shop around in the nationwide credit-card marketplace and to put pressure on interest rates that now average 18.16 percent, up from 17.57 percent last year. If the rates fall, as the bill’s proponents hope, it would mean substantial savings for the typical consumer, who rolls over an average credit-card balance of $875 a month, according to one survey, and pays $158.90 a year for the privilege. More : query.nytimes.com |