More People Falling into Business Credit Card Debt Traps
This week, Senator Charles Schumer made headlines again after he asked the Federal Reserve to provide more protection for consumers against business card issuers. The Credit Card Accountability, Responsibility and Disclosure Act that went into full effect on August 22 does not affect business card companies.
The Associated Press reports that Schumer wrote a letter with the request to Federal Reserve Chairman Ben Bernanke. He cited a 256 percent increase in business card mail offers and notes that many consumers have been unwittingly opening accounts without having the full details of the agreement.
“There’s a legitimate need for a separate type of card for small businesses,” Schumer told the AP. “But there is no excuse for selling those cards to consumers who don’t need them and don’t even know they’re buying them.”
Consumers looking to get a new credit card MUST read all terms and conditions before applying. You need to ensure that you have the financial means to repay the debt in a timely manner to avoid credit score damage.
All people need to be on high alert when it comes to new credit card offers. There are loopholes in the system and the credit card companies will use them to their benefit… so “buyer beware!”
About the Author
The following blog post is from April Lewis-Parks, the director of education for Consolidated Credit Counseling Services, Inc. She is a certified credit counselor and a consumer affairs advocate who is dedicated to generating awareness about personal finance issues. She is on the education advisory committee of the JumpStart Coalition, which is dedicated to furthering financial literacy for the youth and she is active in the South Florida chapter of Junior Achievement which promotes entrepreneurship and financial literacy through hands-on programs.