CARD Act a start, but buyers can still be fooled by deferred interest plans

CARD Act
CARD Act

While the CARD Act for the new credit card rules goes into effect today, there's still one type of credit plan that consumer watchdog groups warn could trick Americans into paying much more than they bargained for: the interest-free financing offers dangled by retailers of everything from stereos to sofas.

The catch, says Chi Chi Wu, a staff attorney for the National Consumer Law Center (NCLC), is that these deals aren't really free. They're interest-deferred, and that makes a big difference. WalletPop interviewed Wu to find out what the deal is with these financing plans and why they can be a trap.