New credit card rules go into effect today. (And others will go into effect in February, when new Congressional legislation becomes effective.) Today's rules are relatively minor, such as giving consumers more time to pay their bills. Next year's changes are broader, including rules that will restrict over-limit fees and marketing to students and young people. So, the credit card companies are looking for other ways to make money (which is what profit-making companies will do). This article in today's Washington Post explains that credit card companies are instituting annual fees on accounts that previously did not impose them and increasing interest rates and late fees. The article quotes a spokesperson for American Express saying, in business-speak, that the new legislation prompted the moves: "The reason why we did it is to be responsive to the business and economic environment, which obviously included the recent regulatory changes."
Jeff Sovern made mention of this phenomenon briefly in a post at the end of June. Jeff questioned whether the coming legislation was the real cause of the fee and rate hikes.
Hello. After many years at Public Citizen, I have moved to Georgetown
law school, where I will be a co-director of the Institute for Public
Representation (IPR) and head IPR's Civil Rights Clinic. You can reach
me at 202 661 6582 and wolfmanb@law.georgetown.edu.
If you want to contact the Litigation Group, contact Litigation Group
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Brian Wolfman
Posted by: Brian Wolfman | Thursday, September 24, 2009 at 06:28 AM
An aggressive course of action is required on your part to pay off your credit card debt. Certain simple steps including low interest payments rates, smallest balance pay off and paying more than the minimum required monthly repayment can ensure clearance from your credit card debt completely.
http://letterdash.com/saver/Save-Money-by-Reducing-Your-Credit-Card-Interest-Rates
Posted by: Robin Smith | Thursday, September 24, 2009 at 06:25 AM