Report Finds CUs Offer Better Deals OnCredit Cards
CHICAGO - (07/07/05) -- A report by The Woodstock Institutesuggests the credit card industry employs deceptive practices tomake more money off of credit card consumers but pointed out thatcredit unions have fewer fees, lower fees, lower default rates andclearer terms and conditions than other card issuers. "BlindfoldedInto Debt: A Comparison of Credit Card Costs and Conditions atBanks and Credit Unions" documents " the highly confusing terms andconditions now used in the credit card industry" and how thiscontributes to the rising levels of consumer debt. "While banksadvertise 0% annual percentage rates for balances transferred totheir card, only the fine print reveals that they charge a balancetransfer fee, usually a percent of the amount transferred, for theservice," The Woodstock Institute said. "Banks are twice as likelyto charge fees on balance transfers and cash advances than creditunions."