One example of a credit-card agreement called "gobbledygook" by the House Consumer Affairs Subcommittee, and a translation of the same agreement:

The Purchases Finance Charge Balance is an average daily balance determined by adding the outstanding principal balance of "Purchases Subject to Finance Charge" on each day of the Billing Cycle (after applying Debits and Credits posted that day), and dividing the total by the Number Of Days in Billing Cycle. "Purchases Subject to Finance Charge" are all Purchases, from the date they are posted to the account, with the exception of any New Purchases posted during a Billing Cycle when either (i) the Previous Balance for the Billing Cycle is zero, or (ii) the total Payments or other Credits posted during that Billing Cycle are equal to or greater than the Previous Balance for that Billing Cycle. The FINANCE CHARGE at periodic rate for Purchases is computed by (i) multiplying each portion of the Purchases Finance Charge Balance shown on the face of the statement by the Number of Days In Billing Cycle, (ii) applying to the resulting products the applicable daily periodic rate of .04109%, (iii) adding these products together. The Annual PERCENTAGE RATE is 15% (Minimum Finance Charge $.50) .-- Northeastern Bank Master Charge Agreement

The "purchases finance charge balance" is an average daily balance. It is determined by dividing the total balance by the number of days in the billing cycle. All purchases are subject to finance charge, unless the previous bill was paid in full. The finance charge is computed by multiplying the average daily balance by the number of days in the billing cycle, then multiplying that number by .04109%. The annual percentage rate is 15% (Minimum Finance Charge 50 cents). -- translation, approved by assistant vice president Donald Vermilya