How much should credit card companies have to disclose?

Liz Pullman Weston writes that "Some of the credit card industry's most egregious practices are finally getting the regulatory and congressional scrutiny they so richly deserve. Consumers this month have the opportunity to weigh in on Federal Reserve reforms and on legislation that could make credit cards a lot more fair."

Everyone knows about the egregious practices Weston is referring to: universal default, "fixed" rates that are about as fixed as the levees were in New Orleans, and just generally insane terms that very few people can understand.

While there is debate about specific changes that should be made, there is one universal principle that should be applied to the financial services industry, and it's the same principle that is used in the medical field: Informed consent. The financial services industry should adopt the following as its motto for disclosure -- perhaps the Fed can give them a nudge:

All consumers should be given enough information to make a decision about whether a certain financial decision is right for them. This information should be presented in a way that is easy to understand, and no information that could influence the consumer's decision should be withheld.

To me, that just about covers every single egregious practice in the banking/lending industry. If a person were told at the point of sale that that stick of a gum he is putting on his debit card could cost $15.69, not $.59, would he still buy it? Since most people wouldn't, this information should be made available.

The financial services industry needs to be held accountable for its deceptive practices -- and the payday lenders need to stop being used as scapegoats. They're the least of our worries.