Schumer requests second look at corporate credit card rules
The recent implementation of the Credit Card Accountability, Responsibility and Disclosure Act has been celebrated by consumers for its added protection, but corporate credit cards are exempt from the new legislation. As a result, some lenders have used a loophole to increase their marketing strategies and offer business credit products to consumers.Senator Charles Schumer has responded to the new trend by urging lawmakers to impose tighter restrictions on banks that are offering these products to consumers, which often carry less protection from interest rate hikes and predatory lending practices.
"There's a legitimate need for a separate type of card for small businesses," Schumer said. "But there is no excuse for selling those cards to consumers who don't need them and don't even know they're buying them."
With more lenders trying to find ways to boost profitability amid the new lending restrictions, consumers should examine any credit card offers they receive before entering a contractual agreement.
