Readability of the credit card agreements and financial charges

被引：4
|
作者：
Cash, Alyxandra [1 ]
Tsai, Hui-Ju [1 ]
机构：
[1] Washington Coll, Dept Business Management, 300 Washington Ave, Chestertown, MD 21620 USA
来源：
FINANCE RESEARCH LETTERS | 2018年 / 24卷
关键词：
Credit card; Readability; Financial charges; Annual percentage rates; PERSONAL BANKRUPTCY; ADVERSE SELECTION; SWITCHING COSTS; MARKET; COMPETITION; RESOURCES; DECISION; INTERNET;
D O I：
10.1016/j.frl.2017.08.003
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
We examined the readability of credit card agreements and its relationship with financial charges. Examining the credit card agreements filed with the Consumer Financial Protection Bureau in 2014, we found that the typical credit card agreement is written at an 8th to 9th grade level, which is higher than the average American reading level. We show that the readability of credit card agreements is negatively related to financial charges: cards with easier-to-read agreements are associated with lower annual percentage rates, lower minimum monthly payments, and lower cash advance fees. (C) 2017 Elsevier Inc. All rights reserved.
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页码：145 / 150
页数：6
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