Feds asked to look at credit card marketing - KWWL - Eastern Iowa Breaking News, Weather, Closings

Feds asked to look at credit card marketing

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NEW YORK (AP) -- A senator is asking the Federal Reserve to help individuals avoid opening corporate credit cards that come with fewer protections than cards meant for consumers.

U.S. Sen. Charles Schumer asked Fed Chairman Ben Bernanke to crack down on banks selling cards designed for small businesses and professionals to consumers, by requiring applications to ask for more information about the business.

Studies have shown a 256 percent increase in the number of corporate credit card offers mailed by banks since last year, before new regulations kicked in.  Banks have more leeway on how they handle interest rate changes, fees and other aspects of business cards than they do with consumer cards under the new law.

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