If you've been spending all your time reading US Weekly and Perez, you may have missed that the government is enacting some new credit card rules.
Read all about it here to get educated on the subject:
NY Times Online
Consumers Dealt a New Hand in Credit Cards
There are some interesting new rules, such as:
"Card companies will have to give 45 days’ notice before raising their interest rates. There’s also a notice requirement for any significant change to a card’s terms, which may keep companies from surprising customers who have been saving their loyalty points for years with huge alterations in rewards programs."
However, some are saying the new legislation won't be that great for those of us who pay off the balance every month and use the cards to stack rewards.
What do you guys think about the new laws? They look pretty good to me.
And here is the rest of it.
Thursday, May 21, 2009
Budgeting Babe Alert: New Credit Card Rules
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13 comments:
I think the best thing that came out of this bill is forcing the CC companies to apply consumer's payment to highest APR balances first rather than lowest. This would save a lot of money(in terms of interest) for folks who do not pay thier balances in full.
It seems like CC companies shot themselves in the foot by being a little too vicious. They had a good thing going as people were maxing out to the point where they could barely make the minimum payments (so CC companies were getting the maximum they could), but they went and tried to gouge even more, trying to make up for their losses in other places. Of course there would be backlash in this economy.
Good or bad? I expect some fallout...probably more difficult to get rewards or benefits, and more annual fees, but I also think the backlash of competent users who pay in full each month would hurt them pretty badly...Monthly fee for less rewards and I'll happily shift over to a no-fee debit card. Enough reaction like that and the small % they get off of each transaction will be reduced dramatically and maybe they'll rethink their strategies.
They DO make money off of those who pay off each month, just not enough to keep them happy. Lead by greed!
The NBC pundits are dead wrong again. This is not the bottom of the recession. Its not the beginning of a true recovery. Its only a brief period of optimism or the beginning of that short and shallow revival. There will be some positive signs over the next year or so amoung the negative. But they will not lead to a true recovery. Our leaders may claim to end the recession in 2010. If that claim is made, it will be based only on that short and shallow (printed) revival. It absolutely will not last. I stand by my predictions made earlier this year. Obama's efforts are revolutionary but they are too little too late. He will have no choice but to acknowledge a severe US depression by the end of his first term or shortly thereafter. Every major economy in the world will be in depression by 2015.
The NBC pundits (Chatzky and Wong) are bound and determined (paid) to plug their coorporate sponsors and perpetuate the 'multiple credit card' lifestyle. Their claim is that you need more than one to build reasonable credit, finance a home, and be relatively secure financially. THAT IS ANOTHER FLAT-OUT LIE. The industry is simply too corrupt and predatory to deal with. It has been for at least 20 years. The use of 'multiple credit cards' is simply too risky, addictive, complicated (check that fine print), and ultimately expensive. In the vast, overwhelming majority of cases, the 'multiple credit card' user has ended up further in debt year after year after year. Their credit was built to some extent on a temporary basis and their ability to repay loans was diminished gradually right along with their bottom line. They ended up paying as much or more in finance charges as they did on principal. That is OBSCENE. Now, their net worth is way down. Their ability to get out of debt f#$&@#. That 'credit' didn't get them anything but F#$#@#. Still, those NBC pundits (liars) have the nerve to perpetuate that 'multiple credit card' lifestyle as if it were ever legit or necessary to begin with. It wasn't. Until two years ago, one could have built reasonable credit with a stable income, a checking account, a savings account, one secured credit card, one loan for a used car, one loan for a new car, and a reasonable downpayment. Until recently, that was enough credit to get a first home loan. Now, the economic boom is OVER. The majority are F#$&@#. Its only going to get worse. A LOT WORSE. The window for ordinary (decent) people to stake their rightful claim is closing fast. They better get out of debt soon and well prepared for the comming US/global depression. It will be catastrophic. Under these circumstances, it is downright reckless and irresponsible to promote more use of credit cards. Only a calculated PIG with an ulterior motive would have the nerve. The 'multiple credit card' lifestyle wasn't the only cause of this economic crisis but it was a contributing factor. Another vehicle amoung many to transfer wealth from poor to rich. Which again, is the single greatest underlying cause. IT WILL BE OUR DOWNFALL.
Woah!
Now 21 year olds can celebrate their first legal drink and their first credit card in the same week!
I guess that's a good thing? If nothing else, it means that the first night of bar tabs will be interesting.
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I like your blog so much and i always read you blogs. and in this blog you give the very great information about the credit card and your rules of the budgeting are too good.
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These new rules for credit card issues are good across the board.
Unfortunately, many people are ignorant to what they are getting themselves into until the see the consequences. Yes, it may be more difficult to get a credit card for some, but a credit card is not a necessity - it's for convenience.
Anyway, we see way too many people did themselves into a hole and then spend years trying to claw their way out. I hope this change in the law will prevent them from getting there in the first place.
I think these rules are really great and will change the way consumers use credit cards. I also read about a clause stating that under 21 people should show a proof that they could pay. I think it is better if we do not limit that rule to young adults only. It will be better if all credit card users and applicants will show a proof that they have the money and the resources to pay their bills. Thus eliminating the possibility of another credit crunch in the future.
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