Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Studies recommend easier language in credit card agreements

Studies recommend easier language in credit card agreements

By
Add to Favorites:
Studies recommend easier language in credit card agreements

A recent study conducted by an independent credit card firm showed that most of the stated agreement and policies included in several credit cards are not easily understood by most of its cardholders. Most of the texts shown in several credit card plans are leveled for the 12th grade readers.


The analysis showed a significant result at four out of five Americans, that were surveyed do not understand the agreement that most credit card companies issue their clients. According to the study, average adults from America can read and understand written information for the ninth-grade on the average. Thus, it is recommended that credit card companies should make the agreements more understandable for the average American adult.


The study also added that vital and important information should be written in a more understandable manner. This will help the company from getting accurate information from their clients.


According to Lauren Bowne, Consumer Union`s attorney, credit card companies should act also on behalf of its clients. If these companies want their clients to operate under the conditions and use of their credit cards, the credit card industry should make sure that the information should be easier to read.


A recognized expert in the field of writing, Roy peter Clark, also added that the reason why credit card contracts are written for the 12th grade level is for the card holders not to understand the policy behind credit card use. He said that most credit card companies might have written the text in such manner deliberately. The inability of consumers to understand these agreements has led to higher default in payment, which in turn led to increased debts.


Bowne also added that there are instances where credit card companies enforce their clients and customers to read the terms and conditions for the acquisition and use of credit cards. But the problem is that most of them cannot do so, simply because most consumers find it tiring to read the small font used for these agreements. Thus, several financial advisers recommended that credit card holders should thoroughly examine and ask questions from credit experts if the agreement is hard to understand.


The experts also added that due to credit card reforms and stricter regulations from the government, it is better that the consumers should also do their part to avoid future problems involving credit card contracts. They also added that an informed client and consumer will likely avoid the risks brought about by the use of credit card.

Add to Favorites:

Related News:

Best Buy Gets Chase Pay

By Dar Dowling, Posted: September 30, 2016

Best Buy carries everything from smartphones and TVs to computers and cameras – and now people who shop with them will be able to use Chase Pay when shopping online. Continue reading
Financial Optimism is Up, But So is Income Stress

By Dar Dowling, Posted: September 29, 2016

Are you feeling more hopeful, yet are still a bit worried about whether or not you're making enough money? Continue reading
MasterCard Send Makes a Splash

By Dar Dowling, Posted: September 28, 2016

MasterCard and Stripe have teamed up so that U.S. sellers using Stripe marketplaces, like Postmates, Instacart and iCracked, can opt to make instant payouts via the Stripe interface, using MasterCard Send. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit