Consumer Credit | Wheatworks Blog: Financial Matters

Home

Posts tagged ‘Consumer Credit’

The Schumer Box

8/4/2008, 9:44 pm

Credit card companies are the target of a lot of consumer angst. Between raising interest rates at will and making a killing off of fees, credit card companies seem to have all the power in the lender-borrower relationship they have with credit card customers. While most of what one reads in the news about credit card company behavior seems excessively one-sided (welcome to capitalism), credit card companies are required to declare an account’s rates, fees, billing practices and what triggers an increase in rate or fee.

This information is provided in what the credit card industry calls the “Schumer Box”, named for Senator Charles Schumer (NY) who sponsored the 1988 law that requires credit card companies to declare certain information in a simple format in every credit card application in the “Schumer Box”.

CNN and Money.com offer a great article that explains how to use the information in the Schumer Box to determine if a credit card offer is a good deal or a rip-off. The article is easy to read and understand and works through each of the Schumer Box numbers. Read “How to spot a credit-card rip-off” for more information.

Share This Post ...