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Most credit card statements issued to consumers around the world lack cardholder credit-limit and repayment information and fail to describe how issuers apply interest rates to new purchases and revolving balances, a new study claims. Melbourne, Australia-based Communication Research Institute conducted the study of credit card statements from nine different countries during the first three weeks of May. It found the majority of statements mask cardholders' true level of debt by obscuring crucial details. More than 100 researchers studied typical card statements from large banks in each country. Consumers "have been lulled into a false sense of security" by credit card statements that are "virtually incomprehensible," David Sless, a research director at the nonprofit institute, said in an announcement. According to Sless, useful credit card statements must contain 90% of essential information, presented in an easily understood format, including the cardholder's credit limit and available credit, interest rates applied to purchases and during the statement period, and an explanation of the payment, its due date, and acceptable payment methods. Card statements the institute studied from all nine countries fell short of Sless' minimum usefulness standard of 81%, beginning with Chile (31% to 44%), the United States (32% to 60%), Australia (33%), South Africa (40%), Portugal (41%), the United Kingdom (55%), Austria (62%), the Netherlands (63%) and Argentina (75%). Sless notes that clearer product information has enabled some pharmaceutical-industry operators to increase their market share, and he suggests competition and "regulatory pressure" may be required to improve the way information is presented on credit card statements.
