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A Schumer box refers to a table or box that contains the summary of the costs (fees and rates) and conditions (terms) of a credit card in the United States. The Schumer box gives basic information about a credit card and displays the information on an easy-to-read table.
The Truth in Lending Act (TILA) is federal legislation enacted in 1968 which require that credit card companies provide basic information about a credit card to safeguard the interest of consumers, especially when transacting with lenders or creditors. The essential information about a credit card that is displayed in a Schumer box includes the rate for purchases, annual percentage rate for transfers and cash advances, annual fee, and other rates and fees.
A Little More on What is a Schumer Box
The use of a Schumer box by credit card companies is credited to Chuck Schumer, a New York congressman at that time, who introduced legislation that mandated rates, fees and terms of a credit card to be specified in an easy-to-read material. The piece of legislation is called the Truth in Lending Act, the Schumer box was subsequently named after him.
By going through the Schumer box, consumers can have an idea of what the rates, fees, and terms of a credit card are. A proper understanding of the content of the Schumer box guides the decision of consumers and protects them during transactions.