Most don't really trust credit card companies

NEW YORK -- Americans still love their plastic, even if they don't trust the credit card companies dishing it out. A study released Wednesday by CreditCards.com found 58 percent of respondents said they "somewhat" or "strongly" agree with the statement "I don't trust credit card companies." At the same time, 82 percent think having at least one credit card is essential, and 77 percent said they like the convenience of credit cards over cash. While seeing the pros and cons of credit cards, 78 percent agreed with the statement that nobody really reads the terms and conditions when signing up for a credit card.

One reason people don't bother reading the terms is that all the fine print is so difficult to decipher, said Ben Woolsey, director of marketing and consumer research for CreditCards.com, a privately held company that offers consumers comparisons on credit cards. The result is that people are later "stunned" by fees and penalties, Woolsey said. Last year, Americans held about $850 billion in credit card debt, according to the Consumer Federation of America. That's about four times the amount of credit card debt held in 1990.

The Federal Reserve is currently reviewing regulations that would curb some of the credit card practices criticized by consumer advocates.