Major U.S. credit card issuers aren't properly informing consumers about the hidden risks of popular promotions, a federal regulator said yesterday, ramping up its scrutiny of card industry practices, the Wall Street Journal reported today. The Consumer Financial Protection Bureau yesterday directed credit card companies to do a better job of disclosing the fine print on such offers as zero-interest balance transfers, so-called convenience checks and cards offered through retailers that don't charge interest for a set period. Most large credit card issuers offer customers the ability to transfer their balance from another card to a new one, seeking to lure consumers with an offer of zero interest for six to 18 months. But CFPB officials are concerned that credit card companies aren't fully disclosing that transferring an outstanding balance can boost interest-rate charges for new purchases.
