Credit card companies have been asked by federal regulators to make the monthly account statements sent to customers 
easier to understand. The changes are set to take effect no later than July 1, 2010 but some credit card companies are expected to make the transition to new statements sooner. The statement changes are a part of the larger scale regulation reforms that are facing the credit card industry, which was passed through the federal banking agencies in December 2008.
Many credit card customers have been consistently complaining that the appearance and the wordage on their statements are too confusing. Additional, customers have voiced issues with the print used being too small. They also allege that the statements do not always contain critical information each month.
Credit cards have long used the disclosure method known as the Schumer box, which required that the main terms were listed in a table. This method was also used on the credit card applications and monthly statements. The new regulation will also require a box but it must contain more details regarding the terms of the credit card, as well as what those terms mean.
Some of the other features include:
Any changes, including the increase of your interest rate after any promotional offer must be included in the monthly statement table. The dates of the effective changes must also be included.
Revision of Terms
The detailed APR and associated fees must be included in the table on the monthly statement. The dates must accompany the table information as to when the rates will go into effect.
Transactions
Detailed transaction information that were processed during the month’s billing cycle must be listed and include a reference code, transaction date, post date, description of transaction, and amount charged for each purchase.
Fees
All fees incurred during that month’s billing cycle need to be listed in detail each month.
Interest Charges
The monthly statement needs to provide a detailed listing of all of the interest charges and the sources for each charge that occurred during that month’s billing cycle.
Totals Year To Date
This is a new requirement for monthly statements. It was created to show consumers how much they have spent throughout the year on fees and interest rates and must be included on all credit card monthly statements.
Making consumer credit card statements easier to follow and to understand may help consumers realize how they are using their credit each month. The addition of the year-to-date information will also shed specific light on how much cash consumers are putting forth for credit card use. Many consumers were not very enlightened about specific credit card terms and what they meant and quickly found themselves in a rut of debt they could not afford to get out from under. The new statements as well as the other new credit card regulations that are coming within the next year should make consumers more aware of their own financial situation and help them to better prepare to be a more responsible credit card user.
If you credit card company has not yet instituted these changes, keep an eye out for the revisions or call the company directly and as when you can expect the change. Each and every month when you do receive your credit card statement, it is good practice to review every line regarding your transactions to make sure they are accurate. Also, review any change to the terms or conditions of your original contract.
Related Posts:
- Card Statements Will Now Cost Consumers - There is an emerging trend that is pushing consumers to go green by using less paper, less energy, less manpower with a...
- Pros and Cons of Going Paperless with Your Card Statements - Many people these days are making the switch to paperless credit card statements. This means that they’ll stop getting statements (and often...
- False Statements On Card Application Lead to Prison Sentence - Making false statements on a credit card application can lead to a prison term. A Weirton, WV man has learned this lesson...
- Australian Consumers Getting New Credit Card Statements - Despite the reluctance on the part of banks and credit card companies throughout the country, Australian consumers are going to get detailed...