Abogados

We support this bill because it promotes transparency in credit card terms. Double-cycle billing and retroactive rate hikes are ways in which credit card companies confuse the issue of how much the card will actually end up costing a consumer. They make it exceedingly difficult for consumers to look at the various plans being offered to them and to choose between them, because it becomes difficult to determine on what grounds someone should make that choice. Any laws that take away counter-intuitive fee determinations are good because they make fee plans easier to understand.

Opponents of the bill seem to understand the need for consumers to have multiple credit options. They do not seem, however, to understand that such practices hide the true cost of a credit card and therefore they do not allow the free market principles to get applied. The goal should be to make consumer comparison between the options an easier task instead of multiplying the variety of terms and conditions. Rep. Jeb Hensarling, R-Texas, betrays this kind of reasoning when he states, “We shouldn't take credit opportunities away. I just want consumers to have choices. I want there to be a competitive marketplace.”