Posted on 12/14/2008 12:49:18 PM PST by Lorianne
WASHINGTON (Reuters) - The U.S. credit card industry, harshly criticized for imposing surprise fees and interest rate hikes on consumers, may face a day of reckoning on Thursday.
The Federal Reserve is to vote on credit card reforms that may bring some relief to customers who face a variety of ways for being hit with late fees, universal defaults, shorter payment periods and confusing payment allocations for different balances.
Credit card users likely also would see easier-to-read tables in their monthly statements as a result of the changes.
The new rules, which were proposed earlier this year, are expected to total some 1,000 pages. They need approval of the Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration, which all are expected to act on Thursday.
Consumer groups say practices of credit card companies blindside consumers and U.S. lawmakers have threatened legislation if regulators did not use their consumer protection powers to reform the industry.
With Democrats strengthening their control of the next Congress that convenes in January and the financial services sector in turmoil, credit card companies that resisted the changes increasingly have accepted them as inevitable.
They have warned that interest rates charged on credit cards will rise for all borrowers and that borrowing limits may be reduce because of the changes.
The industry maintains that credit cards provide a service to consumers with convenience and sometimes free loans.
"The new rules will be a challenge to the business," said Peter Garuccio, director of public relations at the American Bankers Association trade group.
POTENTIAL SWEEPING IMPACT
In 2007, Americans were using an estimated 694.4 billion credit cards with Visa, MasterCard, American Express and Discover logos, according to the Card Industry Directory.
(Excerpt) Read more at reuters.com ...
If they’re not careful, only people with good credit ratings will be allowed to get credit.
Anyway, banks will find ever more creative and less just and more barbaric ways of getting your money, which they desparately need.
I couldn’t believe it every semester when my kids were checking back into college there were credit card companies there offering them credit cards, with no job, no way to repay a balance. It was crazy. It is such a racket.
“In 2007, Americans were using an estimated 694.4 billion credit cards with Visa, MasterCard, American Express and Discover logos”
Say what?
That’s about 2,300 credit cards per every man, woman and child in the country... That can’t be possible...
That’s the same math the banks use to calculate your monthly interest rate!
Obviously no math courses were required for this reporter’s journalism degree.
They just did. They got the government to use force or the threat of force to take money from the American people and give it to them. Nice, huh?
.....They [the credit card companies] have warned that interest rates charged on credit cards will rise for all borrowers....
Higher? To the level of payday loans?
Good observation!!!Guess I’ll have to start sending in those “pre approved” applications-—— only have about 2311 to go.
Perhaps people will stop using them then.
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They have warned that interest rates charged on credit cards will rise for all borrowers and that borrowing limits may be reduce because of the changes. Well, rates are increasing anyways; one only need read Citi's recent announcements of blanket rate hikes. Credit cards are basically legalized loan sharking by a small cartel of big banks. They are whining because their evil operations are starting to come to light. |
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great. now they’ll be FIXED at 29.9%
ooops
“I have a copy of a credit card statement for an account opened by a spendaholic, who had no credit worthiness. The card was for a 300 dollar limit. The Fees to open it were in excess of 275 dollars.She opened it anyway. “
well it’s still a free $25. not as good a deal as a checkbook though. $5 opening fee and you get a whole BOOK of checks!!
already posted http://www.freerepublic.com/focus/f-news/2148601/posts
I don't use a CC, but if I did, just pay it off every month and pay no interest.
Thats what I did before debit cards. Is that a hard concept?
And in other news...
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