Consumers and organizations working in the best interests of borrowers alike are raising their concerns on banks harassing customers through hidden card terms. CardHub.com, a website that does extensive research on credit cards has revealed that except for CapitalOne and Bank of America, banks are not very upfront on their credit terms.
Various categories like rewards, annual fees, costs to make balance transfer and costs to carry on balance were considered during the study. Each of these was rated on a scale of 1 to 10 for clarity with which it was conveyed to the consumers through their forms.
While CapitalOne scored at 96.4 percent, Bank of America scored at 95 percent making them the highest scorers among 10 issuers. The least scorer was U.S. Bank which scored a mere 59.3 percent in the study. Reacting to the study, U.S.Bank spokesman said that the bank had worked on a website which makes clear and accurate information available to consumers to enable them to make informed choices. He said that the bank was open to feedback from consumers and members of the Web community. The spokesman promised that the bank would consider Card Hub`s viewpoint in ongoing reviews.
Majority of banks are clear about the annual fees but lack clarity when disclosing information on balance transfer fee. In many cases, though the information is available in fine print on the form, customers lack the patience to read them.
Owing to various risks and constant harassment by banks, credit card holders are raising their voices against banks which disclose important details. The recent CARD Act was brought into effect for giving relief to such customers. As per the Act, banks will have to shell out fines if they fail to provide the necessary terms and disclosures to borrowers.
Banks in U.S. have started trying to take advantage of loopholes in the Act. Though not violating the Act, banks are coming up with innovative ways to collect overhead charges from customers through various other fees. Borrowers should always make well informed decisions to protect themselves against abuse by banks.
For further details on the latest credit card research, visit the CardHub.com website. This will have a host of information that can get us educated on credit card companies. It is up to us to join hands and protect ourselves from getting exploited by credit card companies.