The new rules -- like banning sudden interest rate hikes -- were designed to help protect consumers.
Consumers should have seen it coming a mile away. In May, Congress passed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, which included lots of new rules designed to protect consumers from predatory practices by banks and credit card companies, such as hidden fees and sky-high interest rates. The new rules, which go into full effect on Feb. 22, threaten to take a big bite out of the $15 billion in penalties and fees that the industry collects each year.
So what have banks and card issuers done? They've come up with new fees.
With a full 44% of American households carrying a balance on their credit cards, the CARD Act was designed to protect consumers by forcing banks and credit card companies to eliminate confusing language in their agreements and statements, make the terms of their credit cards easier to understand and be more accountable to consumers and the government.
GO HERE to see more and read the new rules.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
7 comments:
citi bank card notified us by mail they are gonna be assessing us 60.00 yearly fee if we do not purchase 2500 dollars debit yearly.Guess what citi you are being dropped after 15/18 yrs of use.
I had (past tense) 4 credit cards; now I have a debit card only. It's funny when you call the credit companies to cancel an account, they say this will be a negative mark on your credit. Well in all honesty with the economy the way it is I would think closing an account that I do not know I will be able to pay in 6 months is a pretty wise decision. Not to mention there are millions of people with horrible credit right now, once again, thanks to the economy.
The absolute worst credit card I had was issued through Home Depot. After dealing with breech of contracts and ridiculous charges that were placed on my account do to no fault of my own Lowe's get all of my business. I will never shop at Home Depot again..even paying cash!
I've carried a credit card since 1973.
I always cringe when I get a multi-page "Important Notice About Your Account" from the banks that issued my two credit cards. It seems that the worse the news (higher fees, etc.)the smaller the print.
I ditched my MasterCard (11 years, never a balance from month to month) after they wanted to charge me $50 to use it.
All this money that they're raking in says a couple of things to me: they're spending too much to make their money: too much high end real estate; too many grossly overpaid people at the top, and; they're failing at what they're supposed to be making money on, which is investing, not just sucking it from the consumers.
Anon 9:20 I am with you on boycotting Home Depot. I had a cc with them, and occasionally they would send me 10% off coupons. Each time I tried to use one, the store in Salisbury gave me a hard time. One time the manager was called to the register and actually said 'we don't accept these coupons anymore because you could have printed this yourself off your computer it might be fake.' I had the letter from Home Depot that came with the coupon proving that they sent it to me -- I was just buying a few hundred dollars worth of paint so the coupon was only going to get me about $20 off but it was the principal of the matter. After the way I was treated and they never did accept the coupon, I called and cancelled my card. So guess what the Home Depot cust svc rep on the line offered me if I would keep my card open? You've got it - a 10% off coupon. LOL
This was AFTER I had explained to her exactly why I was cancelling!
Lowe's gets all my business now.
See they already jacked up the rates bofore this so they wont be effected. 33% 37 % already in tacked at one credit card company.
Dont use credit cards, have no card debt.
I am glad I never used them.
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