Page 33 - Book6E

Playing hide and seek with credit card statements . Due to the pass- ing of this Act, credit card companies are required to be more trans- parent in their dealings with the consumer. What have been hidden fees assessed to the unknowing and uninformed consumer, are now appearing in a more straight forward and obvious manner. In the past, a credit card company could assess a hidden fee or a number of hidden fees at will and with little or "hidden" notice to the consumer. The issuer could even make these increased hidden rates retroactive so that the fees could be assessed a couple of months before the consumer was even notified of the change. A credit card company must now notify the consumer 45 days in advance of assessing any rate changes. These hidden fees must now be clearly shown on the credit card statement so as to discern exactly what fees are being charged to the consumer and the purpose of such fees. The passage of the Act has actually increased the importance of having a credit counselor because of his ability to determine that the credit card company has or hasn't maintained its previous "hidden fee policy" and that the company has followed the Act and provided clarity of fees on the statements. A consumer can then decide what credit cards need immediate attention due to frivol- ity of shown charges. With the enactment
of the new legislation, the credit counselor
can provide even more information on the
purposes of fees that previously were hid-
den or frivolous. A credit counselor can
also look at the spectrum of a consumer's
debt and advise him which accounts to pay off in the quickest manner and which credit card companies more often charge unnecessary fees. Credit counselors are in a unique position to negotiate that certain fees are taken off of a statement.
Plastic Money 25
People lend only to the rich.
— Proverb