How to solve the credit card regulation mess



recently asked two experts -- a college professor and a senior fellow at the Competitive Enterprise Institute -- about whether laws should be passed to protect consumers from sudden increases in the interest rates on their credit cards. The pro/con piece is a good introduction to this topic, and definitely worth a read.

Karen Gross of Southern Vermont College describes the current policy of disclosure as a "flawed paradigm," writing that that "We erroneously assume consumers read, understand, and act on the explanation of credit card terms they receive. Many consumers, even those who read what they receive, do not fully understand the disclosures, which are often in small print or legalese."