[1 Dec update-corrected internal URL] A GAO study Credit Cards: Increased Complexity In Rates and Fees Heightens Need for More Effective Disclosure to Consumers (GAO 06-929), requested by Senator Carl Levin (D-MI), has been released. Here's an excerpt from our joint release with other consumer groups:

The report points out the need for simplified pricing that consumers can better understand, and the importance of prohibiting abusive credit card pricing practices (such as two cycle billing, residual or "trailing interest" and "universal default.") The report finds that there are many new types of credit card fees, and that they have risen much faster than inflation. It also finds that current fee disclosures are difficult to understand, bury important information, and often fail to convey to cardholders when late fees would be charged and what actions could result in penalty interest rates.

Unfair or confusing credit card practices take advantage of working families. This report shines a needed spotlight on excessive credit card fees, unfair interest rates, and inadequate disclosure practices that ought to be stopped.