Schumer box

The Schumer box is a summary of the costs of a credit card in the United States. It is named after Charles Schumer, then New York congressman (United States senator since 1999) who was responsible for the legislation[1] requiring that terms of credit cards be clearly outlined in any promotional material. The law was enacted in 1988 and took effect in 1989 in the United States.[2] Similar legislation was enacted in the United Kingdom and took effect in March 2004. Credit card companies are required to list long-term rates in at least 18-point type and other key disclosures in 12-point type.

The Schumer box includes:

  • Annual fee if applicable
  • Annual percentage rate for purchases (APR)
  • Other APRs (balance transfer, cash advances, default APRs)
  • Grace period
  • Finance calculation method
  • Other transaction fees (balance transfers, late payments, exceeding credit limit fee, cash advances)

All credit card companies use the same format, making comparison shopping for credit cards easy.

The Schumer box is also known as the summary box, transparency box, clarity box, consumer box and honesty box.

References

  1. ^ Senator Schumer Website: Press Room
  2. ^ "Final Rule: Truth in Lending; Credit and Charge Card Disclosures (12 CFR Part 226)". Docket No. R-0654, Board of Governors of the Federal Reserve System, April 6, 1989, p. 1.
Chuck Schumer

Charles Ellis Schumer (; born November 23, 1950) is an American politician serving as the senior United States Senator from New York, a seat to which he was first elected in 1998. A member of the Democratic Party, he has also been the Senate Minority Leader since 2017. He first defeated three-term Republican incumbent Al D'Amato before being reelected in 2004 with 71 percent of the vote, in 2010 with 66 percent of the vote, and in 2016 with 70 percent of the vote. He is the current dean of New York's congressional delegation.

Before his election to the Senate, Schumer served in the House of Representatives from 1981 to 1999, first representing New York's 16th congressional district before being redistricted to the 10th congressional district in 1983 and 9th congressional district in 1993. A native of Brooklyn and graduate of Harvard College and Harvard Law School, he was a three-term member of the New York State Assembly from 1975 to 1980.

Schumer was chairman of the Democratic Senatorial Campaign Committee from 2005 to 2009, during which time he oversaw 14 Democratic gains in the Senate in the 2006 and 2008 elections. He was the third-ranking Democrat in the Senate, behind Senate Minority Leader Harry Reid and Minority Whip Dick Durbin. He was elected Vice Chairman of the Democratic Caucus in the Senate in 2006. In November 2010, he was also chosen to hold the additional role of chairman of the Senate Democratic Policy Committee. Schumer won his fourth term in the Senate in 2016 and was then unanimously elected Minority Leader to succeed Harry Reid, who was retiring.

Credit card

A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts plus the other agreed charges. The card issuer (usually a bank) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance.

A credit card is different from a charge card, which requires the balance to be repaid in full each month. In contrast, credit cards allow the consumers to build a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date.

Credit card interest

Credit card interest is the principal way in which credit card issuers generate revenue. A card issuer is a bank or credit union that gives a consumer (the cardholder) a card or account number that can be used with various payees to make payments and borrow money from the bank simultaneously. The bank pays the payee and then charges the cardholder interest over the time the money remains borrowed. Banks suffer losses when cardholders do not pay back the borrowed money as agreed. As a result, optimal calculation of interest based on any information they have about the cardholder's credit risk is key to a card issuer's profitability. Before determining what interest rate to offer, banks typically check national, and international (if applicable), credit bureau reports to identify the borrowing history of the card holder applicant with other banks and conduct detailed interviews and documentation of the applicant's finances.

Fine print

Fine print, small print, or "mouseprint" is less noticeable print smaller than the more obvious larger print it accompanies that advertises or otherwise describes or partially describes a commercial product or service. The larger print that is used in conjunction with fine print by the merchant often has the effect of deceiving the consumer into believing the offer is more advantageous than it really is. This may satisfy a legal technicality which requires full disclosure of all (even unfavorable) terms or conditions, but does not specify the manner (size, typeface, coloring, etc.) of disclosure. There is strong evidence that suggests the fine print is not read by the majority of consumers.Fine print may say the opposite of what the larger print says. For example, if the larger print says "pre-approved" the fine print might say "subject to approval". Especially in pharmaceutical advertisements, fine print may accompany a warning message, but this message is often neutralized by the more eye-catching positive images and pleasant background music (eye candy). Sometimes television advertisements flash text fine print in camouflagic colors, and for brief periods of time, making it difficult or impossible for the viewer to read.

The use of fine print is a common advertising technique in certain market niches, particularly those of high-margin specialty products or services uncompetitive with those in the mainstream market. The practice, for example, can be used to mislead the consumer about an item's price or value, or the nutritional content of a food product.US Federal Trade Commission (FTC) regulations state that, for an advertised offer to be lawful, the terms of the offer must be clear and conspicuous, not relegated to fine print.

Information design

Information design is the practice of presenting information in a way that fosters efficient and effective understanding of it. The term has come to be used specifically for graphic design for displaying information effectively, rather than just attractively or for artistic expression. Information design is closely related to the field of data visualization and is often taught as part of graphic design courses.Information design is explanation design. It explains facts of the universe and leads to knowledge and informed action.

Schumer

Schumer is a surname. Notable people with the surname include:

Amy Schumer, American comedian and actress

Chuck Schumer, American senator

Fern Schumer Chapman, American author

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