The Schumer Box appears on a credit card statement. According to legislation enacted in the United States in 1988, this clause must appear on any promotional material that companies issuing credit cards are distributing. Credit card companies operating in the United Kingdom are also subject to a similar law. The Schumer Box is also known by other names, including the consumer box, clarity box, or summary box.
Information Contained in the Schumer Box
The Schumer Box must set out some important information that all credit card customers need to know. The credit card companies must tell their customers whether they are required to pay an annual fee on their account. They must also disclose the annual percentage rate (APR) that applies to any purchases made using the card.
Along with the APR for the card, the Schumer box also sets out how much interest the customer pays for other types of transactions, such as balance transfers. Fees charged for cash advances, balance transfers, or late payments are also listed. The fee for exceeding the credit limit on the account must also be included.
Credit card purchases are subject to a grace period. Interest is not charged on new purchases right away. Instead, the customer has a certain number of days after the purchase has been made that are interest-free, and the number of days are mentioned in the Schumer box as well.
Who Was the Schumer Box Named For?
The Schumer Box is named after Charles Schumer, a United States Senator from New York. Mr. Schumer was first elected in 1999 and he became the Chairman of the Democratic Senatorial Campaign Committee in 2005.
He was responsible for getting the legislation passed that required credit card companies to disclose certain information about interest rates and fees to their customers. Under the law, credit card companies are also required to list the rates they charge in 18-point type and other important information in 12-point type.
Other Important Information for Credit Card Customers
The Schumer Box has important information that all customers need to be aware of, but it doesn’t contain everything that people who have credit card accounts need to know. Anyone who has or is looking for a credit card needs to examine the fine print carefully so that they understand the terms they are agreeing to.
For example, their credit card may come with a universal default clause. This means that if you are late on payments with another creditor that fact is reported, your credit card company can increase your APR. Depending on the card company, you may be sent a separate letter explaining this fact or you may find out when you get your statement that the interest rate has been adjusted.
The credit card company you are dealing with may have double billing cycles. This means that the customer is charged interest on their current billing cycle, as well as the previous one. It’s possible to pay a credit card balance off in full and still see an interest charge on the account if the company uses this policy.
The fine print on materials issued by a credit card company may also include information about how disputes with the company will be resolved. Disputes may be settled by binding arbitration. In this situation, the arbitrator’s decision is final and may not be challenged or appealed by the parties. The arbitration process may be mandatory, in which case the customer waives his or her right to have the dispute heard by a court of law, or voluntary. If the arbitration is voluntary, the customer and the credit card company must agree to have their dispute settled in this manner.
The fine print may also list other fees that the consumer is responsible for paying. Before applying for a credit card account, it’s a good idea to understand exactly how much you are paying for the privilege of using it. Terms and conditions may vary, depending on company involved, and it pays to consider a number of options before making a final decision.
Thanks to the Internet, looking for the right credit card is relatively easy. Consumers can look at a number of options to find one that offers them the combination of rewards and an interest rate that they are willing to pay. There are cards geared toward people who have excellent credit, as well as those who have had some issues in the past.
No matter whether you are looking for a bad credit credit card or an excellent credit credit card the best way to find a credit card with information in the Schumer Box that meets your needs is to use our free credit card Chaser tool. Why don’t you visit our home page to get started comparing credit cards right now?