The changes come after major card issuers have been pushing through a slew of recent interest-rate increases and fees. In recent months, for example, American Express Co., J.P. Morgan Chase & Co.'s Chase Card Services and Bank of America Corp. have raised interest rates by several percentage points, converting customers' fixed rates to variable ones, and pushing through higher rates and fees for cash advances and late payments. Discover Financial Services, for example, recently started notifying cardholders that it will increase its balance-transfer fees to 5% from 3%.
If Congress does move up the implementation date, they say it should help shoppers feel better about holiday spending because they'll know exactly what the terms of their credit cards will be come January 1st. On the other hand, if this happens you can probably expect a new flurry of last-minute rate hikes and term modifications between now and Thanksgiving.
"Congress Seeks Faster Implementation of New Credit-Card Rules" [Wall Street Journal]
(Photo: zoutedrop)
@mazzic1083: I like to say, "Good initiative, bad judgement."
]]>@ColoradoShark: I like the mooning part. Mainly because my mudda would TOTALLY play getaway driver. Hell, she'd probably moon AND drive. How she would physically accomplish this, I don't know. But I'm fairly certain that's how it'd happen.
]]>There's still time for CC companies to hike rates and fees on good customers and chase away bad customers. Congress will probably move up the implementation date to November 1 next.
]]>I applaud the effort although I fear a lot of the damage has already been done.
]]>Seriously, didn't it ever occur to Congress that the credit card companies were going to screw consumers as much as they could prior to Feb. 2010? Like duh!
I'm just happy that my card issuers haven't totally jacked up my rates, most are still below 15%, and the couple with balances were to remain at low interest 'until paid off' so as long as I don't put anything more on those cards (at least before Feb. 2010), I don't have to worry about "paying off the lower interest balances first" deal.
The cards I have with higher interests, I simply never use (or will use once in a while and pay off in order to keep them "active").
]]>It's like gorging on food the night before you begin a new diet and exercise program. It's natural human behavior to want to get away with as much as you can for as long as you can.
]]>I used to be libertarian, now I just don't know. We can't replace consumer debt with government debt and do any better though.
]]>Really, absolutely the best advice of all.
]]>@notsofresh: It's all Bush's fault anyway, isn't it?
]]>@TheSpatulaOfLove: Do you think Barney Frank is really looking out for your best interests or does he have other ends in mind?
]]>@TinkishDelight: I agree with you 100%. But I believe that many in Congress are very comfortable with adverse consequences to those who are perceived as wealthy.
]]>@Falcon5768: Never blamed the poor, just the stupid and risky. You should learn how to think independently and not as a politicized hack. I agree that the credit card companies behave poorly but more regulations make a bad situation worse and less capital available. Thanks for making an ass of yourself. I am smart enough to read the rules but apparently you are not and have a low opinion of your fellow Americans. YOU SUCK.
]]>If you have a good supportive family, the best gift would be have a zero balance.
And, if you have a fun loving family, they will drive while you moon the bank after you pay the bill down to zero.
]]>@Big Poppa Pimp: As evidenced over and over again on these blogs and highlighted in the recent economic downfall, wealth doesn't automatically bring about good credit.
]]>Yeah it was terrible how the CC companies all sent out goons with guns to force people to get CCs and run up the bills. Somebody should put a stop to that to protect the downtrodden.
]]>If they can, then they should be forced to abide by reasonable regulations, which are in the CARD Act.
]]>LETS BLAME THE POOR THEY SUCK.
God you are too stupid for words.
]]>"Just another stealth and clumsy effort at redistributing wealth that has brought plenty of unintended consequences."
*rolling eyes*
]]>Thanks, Barney for shining a light on the negative effects caused by this bill. The credit card companies have simply shifted the expenses casued by subsidizing risky borrowers to those who have good credit and "can afford to pay more" and have rammed in all kinds of unpleasant changes before the deadline. Are they really surprised that the credit card companies would do this? Just another stealth and clumsy effort at redistributing wealth that has brought plenty of unintended consequences.
]]>