Lawmakers ask for more disclosures over business cards
Millions of those who may be looking to reduce debt but still keep a credit card account for emergencies may have received offers for a new business account in recent months. However, these cards do not offer the same protections from predatory lending practices as those for consumers.
As such, a group of four U.S. Senators recently urged the Federal Reserve Board to increase the disclosure requirements for these accounts, specifically mandating that the offers reveal that the cards do not come with well-known protections, according to a report from Dow Jones Newswires. The lawmakers, all Democrats, told Federal Reserve Chairman Ben Bernanke that issuers may be offering these accounts to consumers who are unaware of the lack of protection they provide.
A recent study found that as many as 10 million offers for business credit cards are mailed to consumers every month, the report said.
While the current law does not extend consumer protections to business accounts, a bill from a New York lawmaker will soon be introduced that would do just that, making it easier for consumers to get out of debt fast.