Posted on 05/20/2009 4:28:09 AM PDT by GOP_Lady
Sweeping new restrictions on credit-card companies would ban extra fees and fluctuating rates and arm tens of millions of consumers with more information on their debts.
Starting in February 2010, a Senate bill passed Tuesday would ban practices such as charging consumers to pay by phone and sudden surges in interest rates. Payments above the minimum due would be applied to balances with the highest interest rates. Information once relegated to tiny print must be made clearer, and consumers will soon be told how long it would take to pay off a balance if they pay only the minimum due.
(Excerpt) Read more at online.wsj.com ...
“Having been screwed myself by my credit card issuers in the past,”
No one can be screwed by a CC company if they pay their bill 100% on time every month.
Anyone that carries a balance deserves to be charged a hugh intrest rate.
I think the "Unintended Consequence" will be that interest will be charged from the time of purchase. That is every credit card user will pay interest even if they pay off their bill as soon as they receive it. This will lead to a significant drop in credit card usage which will have a depressing effect on spending. This would normally be deflationary but the central planers will do whatever they can to obscure the evidence and destroy the currency instead. Have a nice day.
ML/NJ
I know you know your stuff. I agree with you first premise, but I don’t know about deserving a huge interest rate, although, I certainly understand you’re thrust.
I think people deserve to know what their getting into, not deserve turning themselves into debt slaves, but I also don’t necessarily agree it’s the CC companies’ job to educate them.
Another classic example of the Government in solving one problem, create 3 or 4 more other problems as a result. The card companies will simply make up the difference in other even less friendlier ways. Late and over limit fees increase, card holders who pay off their balance each month may be charged an annual fee. Interest rates increase across the board. And say goodbye to perks such as cash back, or flier miles.
“I think the “Unintended Consequence” will be that interest will be charged from the time of purchase”
That’s simple, just cancel the CC and pay everything in cash.
A CC is nothing but a convience card anyway and will only make checkout lines longer.
I’ll just get 500 or 1000 everytime I go to the ATM instead of 200 I get now.
Get your cards through your credit union and only use them for emergencies and pay them off every month and they are not a problem.
If I don’t have the cash on hand to pay the bill totally then I can obviously not afford whatever it is I am using the card to buy.
(Of course some medical type situations may arise but even these can be worked around)
“I also don’t necessarily agree it’s the CC companies’ job to educate them.”
The terms are very clearly laid out in the CC agreements.
Most people are too lazy to read them.
Most people are too stupid to read what they sign and deserve to be had more than they are!
Do debit cards have a fee to use or interest? Or the cards that draw direct from your savings/checking accounts? I’ve never used either, but if they start charging interest on purchases from the time of purchase, I’m sure a lot of folks will.
I’ve used credit cards for almost 20 years now, carried a balance at times, missed payments once or twice (when I was much younger), and used them in emergency situations. Not once did I feel I was screwed by the credit card companies.
I just said i didn’t mind, if a mom & pop business asks for a minimum of $30 in purchases to use a credit card, I don’t get my panties in a twist. If I don’t like the policy I shop elsewhere. These are usually stores I frequent often that provide good prices on their product to make it worthwhile for me to shop there. This policy helps them provide good value to their customers. I get to keep my $3.00. Why pump up your prices to lose customers to give to the cc companies?
Paying bills on time is a big part of good relations with a credit card company....AND YOUR CREDIT RECORD. I have no problems with my two either.
You’re right. I wonder how this will effect internet shopping? I purchase almost everything on the internet and you need a cc for that, this will probably change things.
I understand what you’re saying. I think I may be talking apples to your oranges. I grew up buying from merchants who had a minimum tag, in general it didn’t bother me, unless I had to buy $15.00 of food at the chinese restaurant. Growing up in my age, cash is less convenient.
I thought that's what I suggested would happen; not necessarily the cancellation part but the paying in cash. But when people pay in cash some will not spend as freely as they might with a credit card. Sometimes this is just mental, but sometimes one is limited by the amount of cash he is carrying. Whatever the effect is that spending is reduced which has a depressing effect on the economy.
ML/NJ
“No one can be screwed by a CC company if they pay their bill 100% on time every month.”
We’ve always believed that, and have paid in full each month. A couple days ago I heard that people like us may end up paying some kind of penalty for being responsible in order to subsidize the others. Is that true?
“I purchase almost everything on the internet and you need a cc for that, this will probably change things.”
I don’t because the shiping is more than paying the 73/4% sales tax locally most of the time.
They will either have to set up to take E-checks or they will lose a lot of business.
Or use debit cards?
“I heard that people like us may end up paying some kind of penalty for being responsible in order to subsidize the others. Is that true?”
That’s speculation at this point but if they start to charge an anual fee or charge interest from point of sale i’ll just cancel my CC.
The one I have now with a 30k limit I canceled 25 years ago because they wanted to charge a $50/year fee and they called me back a month later and eliminated the fee pleading with me to take the card back and haven’t tried to do it again.
Just like the old days, before it became fashionable to extend credit to people who likely would not pay it back but would pay tons of interest through minimum payments every month.
I think I would just switch to a debit card. It's hard to see how one could be charged interest on a debit card. For those who do not have a debit card or sufficient balance behind one, some will probably try to synchronize their purchases with their credit card billing cycle. This will most often result in deferring purchases which means reduced economic activity, which is just what we need!
ML/NJ
“Or use debit cards?”
Wouldn’t think of having one!
I wouldn’t think of ever using one unless I was carrying my check book with me to enter the transaction and if I’m carrying it why not just write the check since the bank provides the checks free and it doesn’t cost anything to use them.
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