PRICE INTRODUCES ONLINE CREDIT CARD DISCLOSURE ACT
Washington, DC– Today, Congressman David E. Price (NC-04) introduced the Online Credit Card Disclosure Act, which would require credit card companies to inform consumers about the risks associated with minimum debt payments by regularly publishing clear, personalized, pay-down disclosures online. This bill follows up on an earlier law that requires such disclosures be made on paper statements distributed to consumers.
“The impact of unmanageable debt is significant for both individual families and the public at large. Many creditors employ confusing minimum payment practices that keep consumers locked in a cycle of debt,” said Congressman Price. “The resources that this bill offers have proven to help credit card consumers pay down and manage their credit card debt, and it makes sense to extend them online as consumers move online to manage their credit card accounts.”
This legislation would ensure that consumers are educated about responsibly paying down their debt by giving them more transparent access to:
· Disclosure that making only the minimum monthly payment will increase the total amount of interest they pay
· The total cost, including interest payments, of paying only monthly minimum payments on their credit card balance
· Quarterly assessments of the monthly payment they must make pay off their current balance in 12 months, 24 months, and 36 months
· Access to credit counseling and debt management services via a toll-free telephone number
These resources are already available on paper statements under a provision Rep. Price authored in the Credit Cardholders’ Bill of Rights Act (Credit CARD Act) of 2009. Extending these provisions online will ensure that all consumers are able to make responsible decisions about paying down their debt.
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