The Schumer box is a summary of the costs of a credit card in the United States. It is named after

Chuck Schumer Charles Ellis Schumer ( ; born November 23, 1950) is an American politician serving as the Seniority in the United States Senate, senior United States Senate, United States senator from New York (state), New York, a seat he has held since 1999. ...

, then New York congressman (United States senator since 1999) who was responsible for the legislation requiring that terms of credit cards be clearly outlined in any promotional material. The law was enacted in 1988 and took effect in 1989 in the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

."Final Rule: Truth in Lending; Credit and Charge Card Disclosures (12 CFR Part 226)". Docket No. R-0654, Board of Governors of the Federal Reserve System, April 6, 1989, p. 1. Similar legislation was enacted in the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

and took effect in March 2004. Credit card companies are required to list long-term rates in at least 18-point type and other key disclosures in 12-point type. The Schumer box includes: *Annual fee if applicable *

Annual percentage rate The term annual percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (EAPR), is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mort ...

for purchases (APR) *Other APRs (balance transfer, cash advances, default APRs) *

Grace period A grace period is a period immediately after the deadline for an obligation during which a late fee, or other action that would have been taken as a result of failing to meet the deadline, is waived provided that the obligation is satisfied duri ...

*Finance calculation method *Other transaction fees (balance transfers, late payments, exceeding credit limit fee, cash advances) All credit card companies use the same format, making comparison shopping for credit cards easy. The Schumer box is also known as the summary box, transparency box, clarity box, consumer box and honesty box.

References

{{reflist Credit Financial regulation in the United States Chuck Schumer

See also

References