"These practices may entail unfair or deceptive acts or practices," the OCC said in its letter.
You think?
Actually, most of you don't have to think about it. It's totally unfair and deceptive to bury important details about a credit offer in fine print.
Anyway, I think what the OCC told the banks could be useful to consumers. Here's what the agency said banks should be doing:
• When sending out solicitations with "up to" credit-line hype, provide applicants with a "default credit line" (the lowest credit line available). In other words, the agency encouraged banks to be up front and tell folks they may qualify for only a certain amount and that amount could be significantly lower than the maximum advertised.
• Disclose fully and prominently any material limitations on the promotional rate, such as the time period for which the rate will be in effect. The OCC also wants credit card companies to be clear about any and all circumstances that could shorten the promotional rate period.
• Disclose fully and prominently in promotional materials the circumstances under which the credit card agreement permits the bank to increase the consumer's interest rate (other than because of a variable-rate feature).
All of the OCC recommendations should be common practice. But I know they're not. So it may be up to you to look for the details -- even if you have to look on the back of the offer letter at the very bottom in type that makes your head hurt when you try to read it. But do it.
Especially look for the loopholes. If you do, more often than not you may decide the credit terms are too restrictive to make it worth your while.
Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online at www.npr.org. Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071 or send e-mail to singletarym@washpost.com. Comments and questions are welcome, but due to the volume of mail, personal responses may not be possible. Please also note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.
