Plain Language Disclosure

This week, I went over the towering amount of debt that I owe from college loans. Yes, like millions of American graduates, I will probably be paying off my education until I'm 50—not something to look forward to. I did, however, stumble upon a newly released Plain Language Disclosure document through one of my loan providers, which will no doubt ease the process and understanding of my repayment phase.

For those that don't know, the Obama administration recently pushed through legislation entitled the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, which requires loan and credit card vendors to disclose certain "gotcha" details (the fine print people normally glance over) in a clearer and more blunt manner.

Right out of my Granite Plain Disclosure document, the explanations actually tell you what to watch out for (click on the images for a closer look):


...as well as the new limits to which they can penalize you for late charges:


Basically, instead of calling up multiple loan providers to contrast what one person said in intentionally confusing language with another, I have a document that tells me the essential facts right in front of me. That is a beautiful thing.

In addition, new changes to credit cards include:

• Earlier statements, with due dates that don't shift (21 days to pay, up from 14)
  
• An end to "anything goes" late fee penalization
• Plain language details in plain sight (goodbye fine print)
  
• Fair notice of increasing interest rates or other changes
  

Before signing the legislation on May 22, Obama emphasized that these changes were not put in place to lessen the responsibility of consumers. Sure, they can help people who have mismanaged their money, but the fact is: even responsible people were getting screwed over by endless loopholes and misinformation. If anything, the changes actually push more responsibility by forcing companies to conduct their business in more honest and upfront manner.

To learn more about the legislation, click here.