Dear CFPB,

Thanks so much for taking on the gargantuan task of protecting consumers when it comes to financial matters.

I’m really glad that the bureau has signaled that disclosure and transparency needs to be improved. And when it comes to credit card offers, I think a large part of disclosure involves making terms and conditions as clear as possible. Disclosure, in itself, doesn’t mean much if most consumers can’t make sense out of all the legal mumbo jumbo. So I’m on the bandwagon for disclosure in its simplest, most straightforward form.

I know this is an uphill battle, but it has to be fought (and won). I’ll join you in the fight for clarity. Here are a few suggestions that the CFPB could do to make credit cards so much easier for consumers to understand.

 

1. Standardize the name and location for the APRs and fees.

The box (a.k.a. the Schumer Box) that contains this information is standardized, but the way issuers refer to this box–and where it’s located–differs. To illustrate this point, I’ve outlined examples from issuers in the industry including Chase, Citi, Capital One, American Express, Bank of America and Discover:

Here’s a list of issuers, the name of the link, and the location on the website page. To see the Schumer Box for these issuers, when you click on a link, it opens in a new window.

  • Chase: Pricing and Terms; middle of page
  • Citi: Terms & Conditions; upper left
  • Capital One: Rates & Disclosures; tab across the top
  • American Express: Terms & Conditions, bottom of page
  • Bank of America: Terms and Conditions; upper middle

For this issuer, no clicking is required:

  • Discover: Interest Rates and Interest Charges; bottom of page

Personally, I like the way Discover displays the Schumer Box. No clicking to open a new window. You scroll down, and voila, it’s there.

This might appear to be a nitpicky point, but it’s not. To get the best deal, I encourage consumers to research the terms on different cards. With uniformity, it will be easier to steer people in the right direction. And besides, the card issuers are marketing a product to consumers. Consumers shouldn’t have to hunt for information about interest rates and fees. Really, this is in the best interest of card issuers, too.

Here’s the name I suggest: Interest Rates & Fees. Why? Because that’s exactly what’s in the Schumer Box. I prefer the ampersand (&) to “and” because, well, I just like the way it looks.

 

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