Page 34 - Book6E

26
Plastic Money
Credit Card Payment: Cause & Effect
Credit card issuers will now be required to show, on a consumer's statement, the varying consequences of a consumer's finances if
he pays the minimum payment on his debt, and the extra interest incurred in doing so. Issuers have to illustrate on the monthly state- ments, calculation of interest if the consumer pays off the entire debt in 36 months as opposed to lengthening or shortening the time it takes to pay the debt in full. Showing the various scenarios on the statements provides the credit counselor with important information to even better serve the consumer in paying off his credit card debt intelligently and efficiently. In a credit card company's mandated clar- ity, much more information can be gleaned for the benefit of the con- sumer. With more information, more interpretation and deciphering are necessary, and a credit counselor can best assess and discuss with the consumer the benefits of paying off one credit card over another.
Was that in my contract? Contracts between credit card companies and consumers have traditionally only been received in hard copy, which means if a consumer had not kept a copy of the contract he had to request a hard copy from the issuer. This is another way that consumers have "skipped over" exactly what benefits and restrictions a credit card had to offer and more importantly, what that company typically charged in comparison to another credit card issuer. A credit counselor did not, therefore, have ready access to the contracts between the consumer and issuer. As a result of the Act, credit card companies are now required to put contracts on the internet. This type of readily obtainable documentation helps the credit counselor to further analyze and compare the various credit card services available to meet his cli- ent's financial responsibilities. A credit counselor can greatly help the consumer in monitoring changes in the contract to better advocate for the consumer. He can inform the consumer if current disclosures and/ or protections and terms listed on the contract adequately serve him. The appearance of a consumer-credit card company contract on the