Stephen Marcus, President of A New Horizon Credit Counseling Services, applauded the revisions which he called “long over-due”.
Fort lauderdale, FL (PRWEB) December 19, 2011
A new consumer-friendly credit card agreement has been introduced by the Consumer Financial Protection Bureau, the agency created to safeguard the rights of the American public in their dealings with financial institutions. The new agreement has been shortened to approximately 1,100 words, down from the typical 5,000 word agreement currently in use by credit card issuers. The change is intended to reduce the contract with the banks to plain English said Raj Date, the bureau’s interim director, at a recent news conference. Reports A New Horizon Credit Counseling Services is a nonprofit debt management organization that has been helping consumers since 1978
Stephen Marcus, President of A New Horizon Credit Counseling Services, applauded the revisions which he called “long over-due”. Marcus said, “Making the new agreement easy for the consumer to understand allows them to make better decisions when selecting a credit card, particularly with regard to the new fees being introduced almost daily.” A New Horizon is a national credit counseling agency that assists consumers with managing their debt.
The new agreement is being tested with the Pentagon Federal Credit Union in Alexandria, Va. With 1 million members, and $15 billion in assets, it is one of the largest credit unions in the country.
The new agreement contains 3 sections: Costs, Changes and Additional Information, designed to clearly explain the prices, risks and features of the credit card. Marcus said, “This is a good start, but in order to simplify the disclosures, the bureau had to move some of the explanations of terms to a website, calling into question whether the consumer will make the effort to reference them on the internet.” Consumers without internet access can get the additional definitions in hard copy.
With an estimated $700 billion in U.S. credit card debt, approximately $6,000 per household, and “difficulty understanding the terms of their agreements” being the top consumer complaint, any improvement designed to make the consumer better informed is a welcome change, said Marcus.
For more information about A New Horizon Credit Counseling programs, contact 1-800-556-1548. They can also be found on the web at http://www.anewhorizon.org, or reached via email at slieberman(at)anewhorizon(dot)org