Responsible credit card holders: consider yourselves warned. The credit card legislation that the president recently signed into law may not only take away your “free ride,” it may also lower your credit score.
The new rules will severely limit a credit card company’s ability to make big bucks off of negligent customers. That being understood, card companies have shifted their focus to responsible card holders: Read the rest of this entry »
As expected, President Obama today signed into law a slew of new rules and limits on credit-card issuers:
Under the bill, credit-card companies will have to take several steps, including posting their credit rules on the Internet and giving cardholders a written statement explaining pending interest-rate hikes 45 days in advance.
Credit-card companies won’t be able to increase interest rates on existing balances except in limited circumstances, such as the expiration of a promotional rate or failure by a customer to make a payment within 30 days of the due date.
The House’s approval of the credit card bill today sends the legislation straight to President Obama’s desk for his signature, which could come as soon as Memorial Day.
Yesterday we reported how this credit-card reform could have an adverse affect on responsible credit card holders. Financial expert Ellie Kay has offered some ways to combat the changes the card reform could bring.
Since both lawmakers and the Federal Reserve have drafted new rules to curb “unfair” practices that some feel exploit struggling credit card holders, banks are beginning to shift their focus to responsible borrowers in order to make up for the billions they are expected to lose once the new rules take effect:
Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.
It has been a while since we last mentioned ‘The Consumerist’, so we figured it was about time. Here are some of their articles which caught our eye over the last two days:
“How To Survive The Downturn If You’re Obscenely Wealthy” — While for most of us, the recession means the fear of unemployment, refinancing our mortgages, or even downsizing to only one automobile. For others, it has caused work stoppage on a 145-foot yacht, or the unthinkable replacement of caviar with, dare I say, carrots.
Who said being rich was easy? Forbes’ May 11 cover story, “Survivor’s Guide for the Affluent,” advises the rich on how to navigate this recession’s choppy waters.
President Obama is scheduled to meet with the top credit card officials from 14 major banks at the White House on Thursday. In what the Washington Post referred to as a high-profile meeting, the president reportedly will strongly urge the credit card executives to take their own action against “lending abuses or face the wrath of angry consumers and a determined Congress…”
According to President Obama’s economic advisers, the president will dedicate significant time and effort to investigating the alleged abusive practices: Read the rest of this entry »
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