Earlier this month, the Center for American Progress released a study suggesting that credit card companies utilize text messaging in order to administer early warnings to customers who are at risk of incurring penalty fees. From the perspective of the credit card holder, this information could be very helpful in reducing the occurrence of penalty charges.

I disagree with the Center for American Progress, however, regarding their suggestion that this should be written into law. However helpful such a practice might seem from a consumer standpoint, it’s difficult to gauge the costs involved in implementation and therefore determine whether, overall, it would actually be a value-added service in practice. The decision should probably be left to market forces.