Fed to run ads on responsible credit card usage - Coming soon to a theater near you!

[Sonic Youth]

Fed to tell moviegoers how to use credit cards
Wed Nov 25, 2009 3:55pm EST

WASHINGTON (Reuters) - The Federal Reserve is going to the Big Screen to counsel consumers about how to use their credit cards wisely during the holiday shopping season.

The U.S. central bank announced on Wednesday it will sponsor 45-second ads before movie previews at 12 theaters in major metropolitan areas from Nov 27 through December 3.

The Fed launched the campaign at a time when it faces criticism for doing too little to protect consumers from risky lending practices that helped spark the financial crisis and U.S. economic recession.

Parts of the Fed message on how to get the most out of credit cards sound pretty basic: "paying on time, staying below the card's credit limit, avoiding unnecessary fees, paying more than the minimum payment."

Still, the reminders may be timely ahead of the launch on Thursday of the Thanksgiving-to-Christmas shopping season when retailers aim to lure consumers with bargain prices and extended hours that many stores count on to produce the year's profits.

It is not the Fed's first venture into movie theaters. Earlier this year, it sponsored ads in selected theaters advising how to avoid mortgage foreclosure rescue scams.