Gov. George Deukmejian signed legislation allowing retail stores to charge unlimited interest rates on their credit cards and installment contracts. The public interest in fair interest rates is sacrificed under this new law.
Because this law takes effect Jan. 1, consumers should be aware that when retailers raise interest rates in 1989, any retail credit balances racked up during the coming holiday season will be subject to those higher rates. Consumers also may be hit with loan-sharking interest rates at some furniture, appliance, and jewelry stores.
Careful shopping for credit as well as goods is the consumer's only recourse.
West Coast Regional Office
Consumers Union of U.S.