The CFPB has warned credit card companies to clearly disclose the terms of their low- or no-interest rate promotional offers.
"CFPB supervisory experience has observed that some card issuers do not adequately convey in their marketing materials that a consumer who accepts such a promotional offer will lose his grace period on new purchases if he does not pay the entire statement balance, including the total amount subject to the promotional APR, by the payment due date," said a CFPB bulletin.
"Affected consumers would be those who maintain a grace period on purchases by paying their full statement balance by the payment due date each month, accept the promotional offer and then continue to make purchases using the credit card," the bulletin also said.
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According to the CFPB, many consumers are not aware that any new purchase made on a credit card account already carrying a promotional balance is usually subject to interest charges.
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