New Bill Proposed To Keep Credit Card Companies Honest Informative - Billing And Practices

Review by GothicSmurf on 2008-02-21
Although the banks say they are interested in protecting it's consumers, they believe that this bill is "unfair."

A few quotes I found interesting:

"A bill introduced a few weeks ago by Rep. Carolyn Maloney (D-NY), would change the way most credit card companies do business and provide significant consumer protection for every card holder."

"The Credit Cardholders’ Bill of Rights would prohibit credit card companies from arbitrarily changing their contract with a card holder."

"When a bank invokes the “universal default” clause, it applies the new interest rate to both future purchases and your outstanding balance. This can be devastating. Your minimum monthly payments get higher and the amount of time it takes to pay off that old debt increases.

"No other business in America could raise the price on something after you purchased it,” says Travis Plunkett, legislative director at the Consumer Federation of America. “But that’s exactly what credit card companies do when they increase your interest rate on an outstanding balance.”"

"This bill would require credit card companies to mail billing statements at least 25 days in advance of the due date. The current minimum is 14 days.

The bill would also set a uniform industry-wide standard for crediting payments. All payments received by 5 p.m. Eastern Standard Time on the due date would be considered on time. Payments made online or by phone directly to the credit card company before 5 p.m. would have to be credited to the consumer’s account that business day."

Comments:12 Replies - Latest reply on 2008-02-21
Posted by tnchuck100 on 2008-02-21:
Do you think this is why Bank of America is jacking up their rates now? They want to raise the rates before this bill passes thereby preventing them from doing so.
Posted by MSCANTBEWRONG on 2008-02-21:
I wouldn't doubt it tnchuck100...
Posted by Anonymous on 2008-02-21:
GothicSmurf -- In all sincerity I really do appreciate and enjoy your suggested readings. Awesome...Thanks!
Posted by GothicSmurf on 2008-02-21:
Stew- Thanks so much.

TnChuck- That makes a lot of sense and I wouldn't doubt it.
Posted by Slimjim on 2008-02-21:
This bill is long overdue, and chuck, you may be on to something.
Posted by Anonymous on 2008-02-21:
Very good and informative review, thanks GS for another great post!

I hate CC companies!
Posted by Anonymous on 2008-02-21:
I'm really torn on this bill. I'd like to see the free market take care of this but with all the mergers and acquisitions and no doubt collusion that ain't happening. Well I guess since they are lending the people's money the people might as well set the ground rules.

And yeah it kind of makes you wonder, eh chuck?
Posted by Principissa on 2008-02-21:
I agree chuck. I look at it this way, if I buy a car and the paperwork I sign has a set rate of let's say 4.5% fixed, it would be illegal for them to raise my rate because that contract was locked in the second I signed the papers. Why should credit card companies be able to raise the rates with no due reason, other than because they feel like it. I have yet to see BOA come up with a valid reason to raise rates on people's cards who have a flawless payment history. Of course if your payments are late or you don't pay your interest rates should go up. But not the people who actually pay their bills on time and in full every month. It's pure greed.
Posted by tnchuck100 on 2008-02-21:
Stew, as far as free market goes the banking industry's obvious collusion defeats that concept. As Princi said, it is pure greed!
Posted by Anonymous on 2008-02-21:
Chuck, very good point, and other banks also? Thanks Gothic, very good info to know.
Posted by MRM on 2008-02-21:
I love CC companies, as long as know what you're getting into and paying your bills on time.
Posted by fascismsux on 2008-02-21:
If anybody thinks that our congress-critters are ever gonna do anything solely for the sake of the well-being of the citizenry VS the interests of the rich people and corporations who own and enrich them ...Please wake up , your dreamin .

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