Credit Reforms May Be Underway
August 4, 2008 · Print This Article
Due to a large concern of harassment and predatory behavior against consumers, the Federal Government has decided to look into the matter of addressing credit card companies in order to determine ways in which people can be protected from their unscrupulous tactics.
For over more than a decade, credit card companies have been subjecting the consumer public to billing practices that are questionable at best — and fraudulent in some extreme cases. Nonetheless, these practices have made the companies that issue credit cards billions of dollars in profit while keeping cardholders stuck making payments for perpetuity. One such example is called a “universal default”, which allows one card company to raise the interest rates applied to a consumer account regardless of the fact that the consumer is diligent with his or her payments when that consumer was late paying another, separate company sometime in the past.
Another miserable tactic is double-cycle billing, which is where a bill that has been paid off can accrue interest despite the fact that it was taken care of. Obviously, these sort of practices do nothing to complement or reward consumers no matter how they respond to their card companies of choice, and instead are just ways of making easy money and keeping people enslaved to their monthly payments.
Realizing the severity of the situation, the Federal Reserve and Congress are both looking into the situation and developing measures that can be taken to protect consumers from these harsh practices while making the businesses practice more transparent and fair policies. The government has opened a forum accepting input from the general population too, so anybody with a suggestion to make, a complaint to deliver, or a story to tell can voice themselves and get the word out.
Even though the past actions of the Federal Reserve have only made the paperwork dealt by card companies even more incomprehensible and tough for the average consumer to follow, there are welcome benefits to the proposed legislation that is currently being reviewed.
Recent additions:
- Have Your Say With Credit Cards
- What Exactly Are Finance Charges
- Credit Or Debit: The Differences
- Some Consequences Of Poor Credit Card Use
- Getting a Free Credit Report
- Credit Score Ratings
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[...] Credit Reforms May Be Underway [...]
mintiecarter: Financial reforms to squeeze consumer credit: mintiecarter: Financial
tenebroust….I am soooooo your #1 fan. You fuckin rock… and you my friend keep me sane in this insaine world. I hope you get to feeling better.
Thank you, Sen. Dodd – In response to credit-card reforms, banks find many new ways to separate you from your money….
The interest rate on one of my cards went up almost 25% and they had the gall to make it RETROACTIVE. I just closed out the card and will pay off the balance at my previous rate. I also applied for and received a new card from another bank who gave me my previous APR. Fight these assholes. Thank you Rep. Maloney!!!!!
: New financial reforms will be needed to help consumer confidence
Appearently not powerful enough. Unqualified people are still getting massive loans and cant repay them, hence the housing market
I know this is a step in the right direction for those people who cannot pay their bills or pay them on time…however, in the process it screwed those of us over who can. Why did I deserve a huge increase on a credit card that paid ME every month for paying it on time?
Add’l consumer protections & reforms from our Credit CARD Act:
Labor's credit card reforms a step in the right direction but pressure on finance workers remains
ukcreditcard: Credit card reforms good for consumers, says NAB
Pretty hypocritical. Now aim that criticism at the GOP for voting against the stimulus then requesting stimulus money.
RBA takes credit today for getting us through the GFC. Says it was their reforms, rather than Labor #ausvotes
New Financial Reforms and Free Credit Scores
Obama slams big business on credit reforms
Brisbane Times
“Predictably, a lot of the banks and big financial firms don’t like the idea of a consumer agency very much,” Obama said at the White House, hours after he …
and more »
The link did not work go figure;/ I agree all credit or credit scores are ruing our world if you could tell me how to stop them without violence' I would like to no. when we cannot protest against this practice it is time to end it.
I concur: Capital One is nothing but Satans motel
Thanks Rep.Carolyn Maloney
Credit reforms reach campuses: Washington PostThe law, which was passed in 2009 and phased in this year, bans issu…
Late payment drop shows impact of credit reforms
The Associated Press
Debt is likely to stay lower, Becker noted, because banks have pulled back on how much credit consumers have available. The number of new cards opened …
Credit Card Delinquency Rates Fall in First Quarter, Debt Declines Fourth …Marketwire (press release)
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