WASHINGTON — The Senate Banking Committee approved by voice vote Wednesday a bill that would require credit issuers to disclose their interest rates, fees and conditions in advertising, solicitations and application forms.
The bill requires financial institutions and retail establishments to give consumers the following information in soliciting credit and charge card business: the card's annual percentage rate of interest, any annual fee for cardholders, the existence of a grace period for payment without interest and the method used in calculating card balances for interest purposes.
Under the bill, the information would be disclosed on application forms and in telephone and written solicitations for such cards. It would not have to be included on consumers' monthly statements or media advertisements that do not include credit card applications.
The House passed similar legislation Oct. 28 by a vote of 408-1, although there are differences. Sen. Christopher J. Dodd, (D-Conn.), the bill's chief sponsor, said he hoped the full Senate would be able to approve the measure before the Christmas recess.