HD59 - Fees and Charges Assessed by Revolving Credit Card Issuers Doing Business within the Commonwealth


Executive Summary:
At the direction of the 2000 General Assembly in House Joint Resolution 14 (HJR 14), the State Corporation Commission (SCC) Bureau of Financial Institutions (BFI) compiled information regarding fees and charges assessed by credit card issuers doing business in Virginia. The information has been posted on the SCC's website at http://www.state.va.us/scc/division/banking/credit.htm.

The spirit of HJR 14 appears to be one of providing information to consumers so they may make informed choices. In the process of compiling this information, it was found that several government and private commercial websites provide substantially the same information. Some websites also provide helpful consumer information regarding the selection and use of credit cards. The SCC has provided links to the government and commercial websites that appeared most helpful.

Consumers should not have a problem finding credit card offers. Television, radio, and the internet are full of them. Financial institutions cross-sell credit cards to holders of other types of accounts and mass mailings are standard industry practice.

Taking the myriad of offers and discerning what they mean and which offer is most advantageous for the consumer is the challenge. The application process has been simplified but understanding clearly how a credit card account works and what the governing terms of the account mean is more difficult. Most complaints received by the SCC involve the customer not understanding the terms of their contract and therefore not understanding the consequences of their actions.

The SCC site and the links available on the site provide a good source of information for those shopping for credit cards.