Credit Card Reform is Working

[SpartanDem]

Credit cards offered online by the 12 largest U.S. banks have eliminated some of the most troublesome practices for consumers, the Pew Charitable Trusts said.

Increasing interest rates on existing balances for some infractions of the card agreements and applying payments to balances with the lowest interest rates first have been ended, according to the report released today by the Philadelphia-based nonprofit organization. The study looked at almost 450 cards advertised by banks and credit unions and compared terms for cards offered in March 2010 and July 2009.

Many of the changes are the result of the Credit Card Accountability Responsibility and Disclosure Act, which takes effect in stages. Its provisions include limiting rate increases and requiring banks to apply payments to higher-rate balances.

Most of these rules took effect Feb. 22; others began Aug. 20, 2009, and some, such as prohibiting excessive late-payment fees, will take effect Aug. 22.

http://www.bloomberg.com/news/2010-07-22/credit-card-reform-succeeds-in-ending-many-deceptive-practices-pew-finds.html




I remember this being declared by some to be ahollow Obama victory or refrom is named only.

[Skittles]

1. it would have been better if they hadn't give them some time to fuck with things

but, I do like the information on the bills telling people how long it would take to pay off a balance sending in minimum payment and how much overall it would cost - overall, I thing the bill has done some good

[Democrats_win]

2. The Dems treated the scum CC crooks better than the CC crooks treat us.

That was unforgivable! The CC crooks should ALL be put in prison instead of what's happening today. (If you've been reading DU, you know that these CC crooks are abusing the law to put Americans in debtor prison.) This along with the firing of that lady in the AG department are injustices that deserve strong action. Liberals should be MUCH more angry than the rich Republicans. They continue to find new ways to harm America. We saw this with how the CC crooks and their Dem enablers treated Americans.

[Clio the Leo]

3. kick! nt

[AndyA]

4. The big problem with this reform was that it gave the banks plenty of time to

jack up interest rates before it took effect. People went from 7% interest on current balances to 19% or even more with just a month's notice from the credit card. They did that to get all the rates up higher before the new law went into effect.

Congress should have made some of the legislation effective immediately, as they knew the credit cards would do this.

Better late than never, but they still gave the credit cards plenty of time to screw their customers.

[progressoid]

5. Now lets bring back usury laws with some teeth