CFPB developing similar credit card formImagine a credit card agreement that's short, to the point and easy to understand. If one federal agency gets its way, what you're picturing could become a reality.

The Consumer Financial Protection Bureau launched a campaign aimed at simplifying credit card agreements Wednesday. The agency is asking the public for feedback on a more transparent credit card form that is broken down into three sections -- costs, changes and additional information -- and features information high up on fees, interest rates and other information.

The bureau will also be soliciting feedback through a pilot program that will offer the agreement to customers of the Pentagon Federal Credit Union.

"When a consumer has to read through pages of legal fine print in their credit card agreement to figure out how their card works -- it's easy to get confused," Raj Date, a special adviser to the Treasury said in a statement announcing the program. "With a short, simple, easy-to-understand credit card agreement, consumers can clearly see the terms of the deal and make the decisions that are right for them."

Read the entire article from The Huffington Post, including an early version of the CFPB's simplified credit card form:

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James Stein

The CARD Act already passed provisions a couple of years ago that were designed to ensure that card agreements were clear and easy to comprehend and by the CFPB’s own judgment it has by-and-large achieved that objective. Fully 60% of Americans polled by the CFPB have said that they already find the agreements both easier to read and clearer. 70% of consumers have noticed that monthly statements now inform them of the consequences of making only minimum payments. An even larger proportion - 77% - said they were aware of the cost of making a late payment.

So the CFPB is attempting to do something that the CARD Act has already done quite well, even by the CFPB’s own reckoning. It’s puzzling to me why the agency has decided to take up this task, but I think that it's a waste of government money.

December 08 2011 at 4:22 PM Report abuse +1 rate up rate down Reply