CREDIT CARDS FOR SUBPRIME CUSTOMERS FACE NEW SCRUTINY

CREDIT CARDS FOR SUBPRIME CUSTOMERS FACE NEW SCRUTINYCredit cards issued to customers with lesser credit are facing a new round of regulations designed to protect the cardholder from being overcharged.
These typically low-limit cards, sometimes known as "fee harvesters" because of their financial benefits to the issuer, carry fees and charges that aren't always readily obvious to the cardholder. However, there are signs that the gold mine may be closing, as the proposed regulations would require creditors to list fees upfront, especially if they exceed 25 percent of the customer's credit limit. Additionally, card issuers would have to include examples of the projected change in balance once these fees have been assessed.
Such developments should be of note to payday loan seekers, many of whom fall into the subprime category.
Related Story