In light of credit card industry authorities responding to complaints by cardholders about slow communication on additional fees, and interest rate increases charged to their accounts, different credit card companies have argued the legal bounds of their mandated notification in their defense.
Credit card issuers are quick to respond to mounting pressures, by saying that legally, they are only bound to notify cardholders about changes once they have fully decided to raise an existing fee, or introduce an additional fee. For this, they say they are not obliged to make information public without first fully receiving final approval of the changes for application.
Even more so, the companies argue that they are legally obliged to notify the cardholders about the changes in fees only – whether it will be an additional fee or increase in an existing one. They say that such mandate made it clear so as not to entertain interpretations at the onset, that interest rate changes are not in any way to be included in information to be reported public. The communication that the credit card company makes in the form of a notice is only about fee changes and not interest rate changes, they add.
Furthermore, the credit card companies said what is needed by the cardholder is a more structured and transparent financial management. The companies say that towards this end, there are already existing credit card industry services like counseling, which are even free of charge in their own respective companies.
They say that credit cardholders can demand for these services from their own card issuer’s offices, in order for them to feel the extent of their entitlements as credit card account owners.
The companies argue that should any client find difficulty in responsibly monitoring his or her account, and assuming that efforts by the company is in itself futile, the cardholders can turn to third parties, (such as a personal financial manager) for assistance.
Finally, the credit card companies say in the same way they are legally bound to notify the credit cardholders, the latter also have the legal duty to read through their monthly delivered credit card account papers, visit their banks or even log-in to their accounts to be aware of such changes.