Credit Card Agreements

If you have a credit card you probably don’t remember its terms and conditions; unfortunately, most people sign on without having read them in the first place.

In truth, they aren’t meant to be understood.  If you scan through the CreditCards.com study results from 2011 and 2016, you’ll get a better feel for what I mean.  Even a lawyer who wants the card will sign on with little more than a glance!

There have always been contract terms that trouble me, and universal default is one of them.  The Credit CARD Act of 2009 changed the rules a bit so it may be less profitable for them in the short run, but it didn’t outlaw the practice entirely.  Card issuers simply changed the way that they do it.

A major thorn in my side has always been binding arbitration.  Signing a loved one into a nursing home?  The clause may be there.  You could also see it in an employment contract.

Depending on the circumstances I’ve often considered the practice unconscionable.  But a lot of the responsibly lies with the consumer.  After all, we continue to sign the contracts and there’s no incentive for them to change their practices.

Well, binding arbitration is back in news with Chase cards that you can read about here and here.

If you have a credit card, have some fun and check out its terms and conditions through the CFPB’s credit card agreement database.

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