Latest Credit Card Reforms Take Effect On Monday Feb. 22nd

[TraderTactics]

Consumer Protection Board Advises Consumers to Take Note of Important New Protections.

Effective February 22, 2010, many unfair credit card industry practices -- such as double-cycle billing, retroactive interest rate hikes and due dates that change from month-to-month -- are outlawed.

Things you need to know about the new rules:
http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm

How do these new rules affect you?

 

[fkbsuhites]

This bill would never have happened in the past 8 years. The scum sucking republicrooks tried to make this bill go away.

Quote from TraderTactics:

Consumer Protection Board Advises Consumers to Take Note of Important New Protections.

Effective February 22, 2010, many unfair credit card industry practices -- such as double-cycle billing, retroactive interest rate hikes and due dates that change from month-to-month -- are outlawed.

Things you need to know about the new rules:
http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm

How do these new rules affect you?

 

[lynx]

How do these new rules affect you? [/B]

Well I like the new rules, but congress shouldn't have given the banks time to adjust to them. The banks decided to proactively screw us to the wall in advance of the restrictions going into place. Even my credit union is bending me over.

Personally, I would have been much better off if they hadn't passed that bill.

 

[RiceRocket]

The only thing I've noticed is that my interest rate is now tied to the prime rate, whereas before it was a fixed rate.
So, as soon as the fed starts raising the ff rate, many cardholders with balances will be up shit creek. With the ff rate at 0, my rate never went down, but luckily, I'm not holding a balance.

 

[the1]

Same here. When the shit hit the fan last year BAC raised my cozy 1.99% card up to 13.99% + prime. I responded by sending them a check (actually an EFT) for the full balance. I'll never carry a credit card balance again. I no longer wish to do business with the devil.

Quote from RiceRocket:

The only thing I've noticed is that my interest rate is now tied to the prime rate, whereas before it was a fixed rate.
So, as soon as the fed starts raising the ff rate, many cardholders with balances will be up shit creek. With the ff rate at 0, my rate never went down, but luckily, I'm not holding a balance.

 

[TraderTactics]

Quote from lynx:

Well I like the new rules, but congress shouldn't have given the banks time to adjust to them. The banks decided to proactively screw us to the wall in advance of the restrictions going into place. Even my credit union is bending me over.

I thought some banks implemented some of the new rules last year?

 

[lynx]

Quote from TraderTactics:

I thought some banks implemented some of the new rules last year?

Some did start phasing in the new rules early, as of course there were a lot of programming and system changes that were needed. The requirement to charge different interest rates on different parts of the balance caused a lot of trouble, I'm sure.

But they made sure to double the interest rates and otherwise get in whatever sneaky terms changes they could before doing so.

Some banks handled it better than others. My credit union sent me a detailed letter explaining how they were doubling my rates and how I could opt-out of that by canceling the card early.
Citibank on the other hand, sent a letter that was much less clear about my rights when they jacked up my interest rate from 6% to 18%.

As I alluded to in my earlier post, the fact that Congress gave the banks time to adjust to the new rules caused them to preemptively raise rates and tighten terms, which actually worsened the situation for a lot of existing card holders.

 

[MattF]

Citi (and I'm sure ultimately others) are now adding yearly fees in to their cards...hey gotta get back that free money you once had somehow!

 

[1flyfisher]

Now all the no annual fee cards are going to be charging fees and higher fees to make up the difference.