SoonerKnight
5/5/2008, 09:27 PM
http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/CrackdownOnUnfairCreditCardPractices.aspx
So, the other day I go to the mailbox and get a notice that my interest rate on a credit card that I have not really used nor remembered having were going up to almost 25%. I thought this was funny because my wife and I had to go to the dentist and we (she) had to have some work done. So we payed for it total we payed like $800. Now a credit card that we never use (and did not use to pay for the dentist) is going to raise our rates because we usually don't spend so much at one time. We also usually pay it off within 30 days but we are waiting for our refund check to pay it all off at once. Now, the Feds are going to "crack down" on credit card companies because they are doing this to everyone!!! HA! We have no balance on the card that is raising it's rates. Here is the story:
Regulators are planning tighter rules to stop credit card companies from unfairly raising interest rates and to make sure they give people enough time to pay their bills.
In the most far-reaching crackdown on the credit industry in decades, the Federal Reserve and two federal agencies are proposing new rules that would prohibit:
Placing unfair time constraints on payments. A payment could not be deemed late unless the borrower was given a reasonable period of time, such as 21 days, to pay.
Unfairly allocating payments among balances with different interest rates. The proposal would require that payments above the minimum be applied in a way that was "beneficial" for the cardholder. For example, a payment above the minimum would go toward a large balance at an 18% annual percentage rate rather than a small 0% balance transfer.
Unfairly raising annual percentage rates on outstanding balances. The rule would ban retroactive interest-rate increases on existing outstanding balances unless a consumer was 30 days late on the account. Banks would not be able to retroactively raise rates on good customers for activity unrelated to the specific card, such as a late payment on a mortgage.Placing too-high fees for exceeding the credit limit solely because of a hold placed on the account, usually by rental car companies or hotels.
So, the other day I go to the mailbox and get a notice that my interest rate on a credit card that I have not really used nor remembered having were going up to almost 25%. I thought this was funny because my wife and I had to go to the dentist and we (she) had to have some work done. So we payed for it total we payed like $800. Now a credit card that we never use (and did not use to pay for the dentist) is going to raise our rates because we usually don't spend so much at one time. We also usually pay it off within 30 days but we are waiting for our refund check to pay it all off at once. Now, the Feds are going to "crack down" on credit card companies because they are doing this to everyone!!! HA! We have no balance on the card that is raising it's rates. Here is the story:
Regulators are planning tighter rules to stop credit card companies from unfairly raising interest rates and to make sure they give people enough time to pay their bills.
In the most far-reaching crackdown on the credit industry in decades, the Federal Reserve and two federal agencies are proposing new rules that would prohibit:
Placing unfair time constraints on payments. A payment could not be deemed late unless the borrower was given a reasonable period of time, such as 21 days, to pay.
Unfairly allocating payments among balances with different interest rates. The proposal would require that payments above the minimum be applied in a way that was "beneficial" for the cardholder. For example, a payment above the minimum would go toward a large balance at an 18% annual percentage rate rather than a small 0% balance transfer.
Unfairly raising annual percentage rates on outstanding balances. The rule would ban retroactive interest-rate increases on existing outstanding balances unless a consumer was 30 days late on the account. Banks would not be able to retroactively raise rates on good customers for activity unrelated to the specific card, such as a late payment on a mortgage.Placing too-high fees for exceeding the credit limit solely because of a hold placed on the account, usually by rental car companies or hotels.