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Credit Card Craziness

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There May Be An End In Sight To Credit Card Craziness

According to the Wall Street Journal --WASHINGTON -- President Barack Obama put his signature on legislation Friday clamping down on credit-card companies' ability to boost interest rates and slap higher fees on consumers, a measure long-sought by the White House but reviled by the banking sector.

And not a minute too soon, either!

Full article

Photo Courtesy: Valleywag

My Personal Tale

Or, How this law change might be a little too late!

I am sure that you are all aware of what happened when WaMu recently tanked, and Chase Bank bought them out. From a business standpoint, this was probably a great move.

From a personal consumer standpoint, this is where my own headaches began. You see, at that point, my husband and I were both credit card holders with WaMu. I had a balance from some business expenses, and was unable to pay off the entire balance due to changes in the economic climate.

This is where the fun began. My husband and I both pay all of our bills automatically through our credit union. We pay early, and we pay more than the minimum due. Always.

During the changeover from Wamu to Chase, the due dates changed. And Chase claims that we were notified. We were not.

Now, our lovely 9.9% interest rate has magically transformed to 19.9%, and we have also received a $39.00 late fee. EACH! OUCH!

When I tried to talk with a real live human being at Chase, I received the party line, which was, "I am sorry to hear that. There is nothing I can do. You were notified by mail." etc., ad nauseum.
(I can guarantee that I had some very interesting blood pressure that day!)

Two days ago, I received a computer generated letter from Chase stating the following: "In order to increase profitability, interest rates were to be increase to 23.4%." As if 19.9% weren't profitable enough.

We were offered an opportunity to opt out of the rate hike, and as a consequence, would have our accounts closed. Yippee!

So, we chose to opt out and have our accounts closed. Now, we are shopping around for better rates until our economic situation improves and we can pay off the entire enchilada.

I will be curious to see how this all pans out in view of the new laws.

Will they be retroactive? Will we get our old interest rate back? Are we stuck with what we've got? Or...will I successfully be able to change to a better rate, somewhere else? Time will tell.

UPDATE - September 17, 2009: Chase Bank rescinded the late fees charged on both accounts! I am so grateful, and truthfully.....Astounded! Yippeee!

Listen to President Obama

Speaking about Credit Card Reform

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What others are saying about this new law!

This is getting really interesting.....

Winners and Losers 3 Years After Credit CARD Act
Banking industry representatives had warned before the credit card regulations were signed into law May 22, 2009, that the reforms would lead to higher interest rates for all users and that many people with bad credit would be shut out of the market ...
Reform battles rollback as Romney pledges to repeal Obama's financial regulations
By BARTHOLOMEW SULLIVAN Scripps Howard News Service After the massive financial meltdown in 2008, Congress passed and President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act in July 2010. Nearly two years later, ...
Americans still relying on the 'Plastic Safety Net'
Another critical provision of the law prevents unfair interest rate hikes: in 2012, 24 percent fewer households experienced an interest rate hike due to a late payment than in 2008. Prior to the passage of the Credit CARD Act, one particularly damaging ...
Grassley rails against increasing student loan rates
Passing $1 trillion, US student loan debt has surpassed credit card and auto loan debt. Average student loan debt tops $25000 nationally, up 25 percent in 10 years. The interest rate increase would cost the 255404 Stafford Loan borrowers in Iowa an ...
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Update!

This Could Drive You a Little Nuts!

Last week, my husband paid off his HSBC credit card.

This week he received (get this!) nine, count them, nine emails from HSBC, informing him that his credit had been reviewed, and HSBC would be LOWERING his credit limit!!!!!

Is the world going crazy, or what?

Amazon on Credit Card Reform

It's kind of a surprise to me to find this information here!

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Have you got a comment related to this issue?

Please share it with us!

This law would not have been passed if I were the only person to have been confronted with usury rates. We want to know your views on this topic.

Thank you so much for sharing.

  • tdove Jun 20, 2009 @ 2:43 pm | delete
    Thanks for joining G Rated Lense Factory!
  • The_Party_Animal May 23, 2009 @ 7:52 am | delete
    I hate credit cards and I am working to get rid of them all, but again with interest rates being hiked - I will probably pay forever.
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Share Your Feedback

Does this new legislation affect YOU personally?

Have you been personally affect by credit card rate hikes?

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Have you been affected by the WaMu/Chase changeover?

Have you ever received late fees and rate hikes because your due date was changed?

The_Party_Animal says:

Yes this has happened to me

 

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Other Places to Get Information

This is a HOT topic and the information is mind boggling!

The Associated Press: Obama signs new rules for credit cards into law
Recent article about the new legislation
Obama Signs Credit-Card Consumers' 'Bill of Rights' (Update2) - Bloomberg.com
President [bn:PRSN=1] Barack Obama [] signed into
law a credit-card consumers' "Bill of Rights" that limits fees
and curbs contract changes, saying it will give Americans "the
strong and reliable protections they deserve."
Will Credit Card Law Alter Consumers' Behavior? : NPR
President Obama signs legislation Friday aimed at overhauling the credit card industry. The measure bans certain practices, and forces companies to present information to consumers in ways that are calculated to change consumers' behavior. Behind this strategy is something called "behavioral ec
The Daily News Online > Archives > News > Lee, Slaughter applaud measure to overhaul credit card system
TheDailyNewsOnline.com -- Your source for local news and sports. Serving Genesee, Orleans, and Wyoming Counties in Western New York
WisBar | InsideTrack | Regulating credit card interest rates and fees
In the midst of the economic downturn and national focus on alleged lending abuses by banks, credit card issuers have been raising interest rates and fees for many borrowers. In April, President Obama summoned credit card industry representatives to the White House for a summit to address mounting concern over card issuer policies and practices.
Credit Card Rates Go Up
WASHINGTON - Credit card companies are raising interest rates and fees seven months before new rules go into effect that will limit their ability do so, much to the irritation of Congress and consumer advocates.

Chase, for instance, will raise the minimum payment required of some of its customers from 2 percent to 5 percent of the statement balance starting in August. Chase and Discover have increased the maximum fee charged for transferring a balance to the card to 5 percent of the amount, up from 3 and 4 percent, respectively. Bank of America last month raised the transaction fee for balance transfers and cash advances from 3 to 4 percent. Card issuers including Bank of America and Citi also continue to cut limits and hike up rates, which they have been doing with more frequency since January.
New rules on credit cards go into effect | clarionledger.com | The Clarion-Ledger
Consumers facing a retroactive increase in the interest rate on their credit card can lock in the existing, lower rate for up to five years after a new consumer protection law takes effect Thursday.

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