Credit card companies are experts in that age-old marketing trick: Weasel wording. Weasel wording is language deliberately crafted to be vague enough to make it possible to “weasel out of” any implied promises and commitments advertised. Weasel wording is a time-honored tradition used not just in advertising, but also in contractual agreements, and in—surprise, surprise—political speeches.
No wonder that credit card companies love weasel wording and use it liberally in both credit card offers and the terms and conditions of credit card agreements. Here are a few examples of credit card weasel wording.
When looking over credit card offers, pay careful attention to how the offer is phrased.
Fine Print: 0% APR for up to 12 months; APR as low as 10.99%; credit limit as high as $10,000.
What it means: That’s anybody’s guess. There is no way of knowing the real terms offered until the card arrives in the mail. With this wording, the actual terms of the credit card will depend on the credit score of the person applying for the credit card. You could end up with what could be a card with a 21.99% APR, a three-month 0% APR, and a credit limit of $1,000. To avoid getting a card with poor terms, instead apply for credit card offers that clearly state the terms, leaving out weasel phrases, such as up to, as low as, and as high as.
Most people regularly receive convenience checks with balance transfer offers in the mail. The fine print of these balance transfer offers is a study in weasel wording. A few examples:
Fine Print: The length of time the special balance transfer rate will apply to your account may be reduced by the amount of your payment.
What it means: If you don’t pay your credit card bill on time, or if you pay less than the minimum payment, the card issuer may choose to cancel the low promotional balance transfer APR.
Fine Print: You account was selected for this offer based on your account status as of (date). If you were late or overlimit since then, the offer has ended.
Meaning: If you use the checks, but your card has been overlimit or you’ve had a late payment within the months before receiving the checks, chances are that the promotional APR won’t apply after all. Too bad, because you’ll still be charged the transaction fee for using the convenience checks.
Credit Card Terms and Conditions
Last but not least, no article on credit card weasel wording would be complete, without the MOAWW—the Mother of All Weasel Wording:
Fine Print: In the future, we may increase your APR if market conditions change.
And: We may change any other terms of your account, other than APRs, at any time.
What it means: Taken together, these two sentences amount to that great MOAWW: “Terms and conditions are subject to change at any time.”
Essentially, with this wording, the card issuer has the right to change all credit card terms at any time. To obscure the real meaning of these two sentences, they were placed in two different paragraphs in the Terms and Conditions from which this example was taken. The Terms also specify that the card holder will be notified of changes in advance and will have the right to opt out by cancelling their card. Unfortunately, that is hardly reassuring for someone with a high credit card balance they can’t pay off.
The big MOAWW is found in almost all credit card agreements in one variation or other. Will this change with the upcoming credit card reform? The Credit Card Act taking effect in 2010 attempts to limit card issuers’ right to make changes to credit card terms, like increasing interest rates and slashing credit limits. However, it only stipulates that card companies can’t change the terms until after the first six months and that they must give card holders 45 days notice. As long as credit card companies stay within those time frames, they will still be able to change key terms like card holders’ interest rate and credit limits.
