Credit Card Legislation
May 30th, 2009 by admin
Just a few days ago Congress passed and the President signed legislation that was intended to put the limits on credit card companies and to protect the American consumer. Much has been discussed about this issue and many are expecting the legislation to “finally†fix the imbalance in the agreement of lender and borrower when it comes to credit cards. Not me.
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Congress, in their effort to protect the consumer and, might I add, their need to keep their positive relationship with the credit card lobbyists, passed the bill that has the following items.
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Interest Rates:
           Can not increase rates on new customers for one year
           DOES NOT stop the card company raising rates if your are late
           DOES NOT cap interest rates
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Fees:
           Limits some fees
           DOES NOT stop fees
           Stops late fees when payment is on time but posted late     Â
           Allows companies to be more creative in finding new fees
           May push card companies to implement, or increase, an annual fee
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Borrowers
           Companies may be more selective in who qualifies
           Limits on extending credit to those 21 or younger
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Much is still to be learned about this legislation and what the credit companies will do in turn. One thing you can count on – the credit companies are in business to make money off of you.
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The fact is credit cards have become a way of life for
The only way to not be taken advantage of by a card company is to choose not to do business with them or any of their competitors. Get the courage and discipline to say enough is enough. Life is so much better without them, their hassles and their monthly bills arriving in your mailbox requiring your monthly payments.
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It is not easy, but you need to start your plan today.