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IN BRIEF / FINANCE

Banks Are Warned on Credit Card Marketing

September 15, 2004|From Reuters

U.S. regulators warned banks against some types of credit card marketing, calling them potentially unfair or deceptive.

In an advisory letter, the Office of the Comptroller of the Currency told banks not to promote credit cards advertising credit limits up to a specified dollar amount to customers with limited or poor credit histories.

The office also told banks not to market credit cards with promotional interest rates unless they make clear to consumers limitations, such as the length of time the promotional rate will be in effect. In addition, the regulator told banks to make clear when a consumer's actions permit a bank to raise the interest rate it charges for credit cards.

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