Insights | November 20, 2023

Deferred Interest Promotions: Deceptive Debt Traps?

Online shopping is increasingly popular, and credit card companies often attract shoppers with offers like “no interest” or “0% interest” for a certain time. These deals sound great at first, but there’s a catch. If you don’t pay off the whole amount before the offer ends, you’ll be hit with all the interest from the start, usually at a high rate.

The Consumer Financial Protection Bureau (CFPB) is paying close attention to these offers. They want credit card companies to make sure customers really understand these deals, including the risks. The CFPB is concerned that the way these offers are set up might be hard to understand and could mislead people, making it tough to handle their money well.

This Consumer Alert discusses how you can protect yourself from the risks of “no interest” offers.

Read the full alert here.

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