The credit card industry is already subject to a sizable amount of regulation: Truth in Lending Act, Fair Credit Billing Act, Fair Debt Collection Practices Act, etc. Granted, that's not to say the regs couldn't be better or start leaning more toward the consumer (especially those changes that happened with the bankruptcy "reform" a few years back) or that the agreements couldn't be written in more straightforward English.
For the issues you've listed (interest rate changes, etc.), all of this information really is included in the agreement you're given when you sign up for the card. And the bank or CC company is supposed to mail out the updates to the terms levels whenever changes are made. You have a choice on whether to agree to those changes or to cancel your card.
What usually happens instead, however, is that people just look at the glossy marketing brochure or whatever gimmick is used to promote the card (airline miles! cash back!). And of course, assume that nothing bad's going to happen.
There's a lot to be said about not signing your name on anything that you don't fully understand. It's the same with any legal agreement: employment contracts, software EULAs, etc.
The problem with not signing anything you don't fully understand is that the corporate entity you're dealing with has dedicated lawyers on hand to draft and revise these things. I'm one guy who's trying to live life. I'm not a lawyer, and I don't have the time to decipher every EULA, every contract, every service agreement, and all the rest of the fine print that we wade through.
Personally I try to hit the high points of standardized contracts but at some point you have to operate on trust. If some entity wants to screw you over, it can be done over subtle things.
I agree that contracts need to be written in a way that allows anyone aged 14+ to 'get it' in 2 minutes.
But the problem here isn't information. People have that, one way or another. The problem is bad choices, starting with the choice to make an uninformed decision. My girlfriend once worked at a bank. They had a credit cards brochure with a comparison table. 4 or 5 cards had gimmicks: miniature cards, points, miles, gold card (virtually no actual benefit), personalised card, internet purchase insurance (for those that reckon themselves rational). 1 card was the right choice. Lower fees, lower rates, lower penalties. It was grey & ugly & had no fun stuff. No one ever picked the right choice.
Those too sophisticated (old) to be swayed by something as dumb as a miniature card or fun points would be swayed by something with a little more mature like exclusivity (gold) or miles. Those making a rational choice pick the extended no interest period or some obscure feature like online purchase insurance or travel insurance or something else they think saves them money.
Now these were all the good cards you get at a bank: 16%-19% interest rates. The low interest card was around 11%. Absolutely economical compared to what you get a furniture store.
The crucial info wasn't in the small print. It was in a big glossy table. There was a clear right choice for anyone that hasn't had a card & never paid interest or late fees in the last 5 years. It was the least popular option.
*prime interest at that point was 7.5%.
There is no problem making a decent credit card with no frills. People won't take it.
But we do know that this was the correct choice for the majority. We also know that the majority didn't take it. So we know that the majority made a mistake.
It doesn't take much of a lapse to void the benefits.
For the issues you've listed (interest rate changes, etc.), all of this information really is included in the agreement you're given when you sign up for the card. And the bank or CC company is supposed to mail out the updates to the terms levels whenever changes are made. You have a choice on whether to agree to those changes or to cancel your card.
What usually happens instead, however, is that people just look at the glossy marketing brochure or whatever gimmick is used to promote the card (airline miles! cash back!). And of course, assume that nothing bad's going to happen.
There's a lot to be said about not signing your name on anything that you don't fully understand. It's the same with any legal agreement: employment contracts, software EULAs, etc.
[Full disclosure: I used to work at Discover.]