The principles and recommendations announced today would go a long way to help all consumers get a fair deal in today's financial services market. Of course, in the absence of legislation, these principles hold little meaning. We will be working with the Administration and Congress to help turn these principles into meaningful legislation. Consumers should have control over whether and how their financial information is shared. The initiative calls for access to basic bank services at affordable prices for all Americans.
Consumers are often unaware of hidden terms when swamped with credit card offers.
This proposal calls for full disclosure of required payment due dates, applicable late payment penalties, and permanent interest rates. The initiative also proposes that consumers be informed of how long it will take to pay off their credit card bills and how much they will pay if they are only making the minimum payment. Consumers have been misled about whether insurance and investment products banks sell are FDIC insured or subject to risk of loss of principal. Homebuyers are told the cost of their mortgage too late in the process, typically only after fees are paid. Once disclosed the terms of the deal can change.