There May Be An End In Sight To Credit Card Craziness
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UPDATE - September 17, 2009: Chase Bank rescinded the late fees charged on both accounts!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
Obama On Credit Card Reform
This week the President recaps a busy week, from strides on fiscal discipline, to financial stability, to cracking down on tax havens and tax breaks for shifting jobs overseas. For his next big step, he calls for a credit card reform bill: "Americans know that they have a responsibility to live within their means and pay what they owe. But they also have a right to not get ripped off by the sudden rate hikes, unfair penalties, and hidden fees that have become all-too common in our credit card industry." Watch Your Weekly Address to hear what he plans to do about it. Remarks of President Barack Obama Weekly Address Washington, D.C. Good morning. I want to briefly share some news about our economy, and talk about the work that we’re doing both to protect American consumers, and to put our economy back on a path to growth and prosperity. This week, we saw some signs that the gears of America’s economic engine are slowly beginning to turn. Consumer spending and home sales are stabilizing. Unemployment claims are dropping and job losses are beginning to slow. But these trends are far from satisfactory. The unemployment rate is at its highest point in twenty-five years. We are still in the midst of a deep recession that was years in the making, and it will take time to fully turn this economy around. We cannot rest until our work is done. Not when Americans continue to lose their jobs and struggle to pay their bills. Not when we are wrestling with record deficits and an over-burdened middle class. That is why every action that my Administration is taking is focused on clearing away the wreckage of this recession, and building a new foundation for job-creation and long-term growth. This past week, we acted on several fronts. To restart the flow of credit that businesses and individuals depend upon, we completed an unprecedented review of the condition of our nation’s largest banks to determine what additional steps are necessary to get our economy moving. To restore fiscal discipline, we identified 121 p...
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What others are saying about this new law!
This is getting really interesting.....
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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!
CREDIT-REFORM PITCH SHOULD BUDGE BINGAMAN.(Editorials): An article from: The Santa Fe New Mexican (Santa Fe, NM)
Amazon Price: $9.95 (as of 11/29/2009) 
Abuse or protection? "Opportunistic" debtors appear to have little to fear from the 2005 bankruptcy reforms.(BANKRUPTCY): An article from: Regulation
Amazon Price: $9.95 (as of 11/29/2009)
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.
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Reply
- tdove tdove Jun 20, 2009 @ 2:43 pm
- Thanks for joining G Rated Lense Factory!
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Reply
- The_Party_Animal The_Party_Animal May 23, 2009 @ 7:52 am
- 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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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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