Complex Pricing of Credit Cards Should Be Simplified

Adam J. Levitin has a commentary published in today's Chicago Tribune titled "Complex Pricing of Credit Cards Should Be Simplified" in which he argues that the complicated pricing structure of credit cards makes it virtually impossible to determine the potential costs of carrying a balance. He believes that the complexity "helps explain the soaring growth of American credit card debt, now approaching $1 trillion." Levitin notes that while he qualifies "as a savvy and dedicated reader of financial contracts, but frequently I cannot calculate with certainty the costs of carrying a credit card balance, and my calls to card issuers' 800-number servicing lines have done nothing to clarify matters."