What is Schumer Box?
A Schumer Box refers to an easy-to-understand table that discloses fees, interest rates, terms and conditions of a credit card agreement.
The table contains the required details of credit card agreements, including the annual percentage rate (APR), variable-rate information, grace period, annual fee, balance transfer fee, cash advance fee, late payment fee, foreign transaction fees, and minimum finance charges.
The purpose of the Schumer Box is to provide consumers with a simple way to review the rates and fees on a specific credit card so they can compare credit card offers and make an educated decision about which card to select.
The use of a Schumer Box by all U.S. credit card companies is required under the federal Truth in Lending Act (TILA).
The Schumer Box requirements apply to offers and credit card statements.
History of the Schumer Box
The Schumer Box owes its name to Chuck Schumer, a congressman and later senator from New York, who in 1988 pushed for landmark consumer protection legislation mandating that rates, fees and other terms on a credit card be prominently identified on credit card offers.
The legislation was enacted in 1988 but did not take effect until 2000.
The Schumer Box: Required formatting
All credit card companies must print:
Schumer Box: Key information
Several pieces of information are required to be disclosed within a Schumer Box including:
Example of the Schumer Box: