Card Issuers Have Sneaky Ways To Catch Consumers
Katy Matlock reports for Baylor's Lariat Online on college students and credit cards. According to Matlock, Dr. Franklin Potts, associate professor of finance at Baylor, describes credit card issuers as having "several sneaky ways to catch consumers".
One of these methods is the universal default clause. This clause allows the credit card company to raise a consumer's rates if the consumer pays a bill late -- to any company. About 45 percent of credit card companies have this clause, Potts said.
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