The Consumer Financial Protection Bureau (CFPB) recently said it is considering a proposal to remove the cap that limits how much banks can charge people in the first year they hold a credit card. These charges include annual fees, application fees and other upfront charges.
Is this bad news for consumers? It’s not good news, but don’t immediately assume the worst. These are proposed changes on which the agency is currently seeking public comments.
This is a good time to remind folks to shop around when looking for a credit card. If the CFPB ultimately decides to remove the cap on fees, pricing will vary among issuers and card products.
Compare bankcards at www.creditcards.com. Also be sure to check out credit unions. A May 2011 study by Pew Charitable Trusts found that interest rates were generally lower for credit union cards. Check out www.asmarterchoice.org to find a credit union that you’re eligible to join.
As always, be a smart consumer!