Since the implementation of the new credit card rules one month ago, consumer complaints about credit cards have been centralized on a single issue:  credit limit cuts.  Ironically, many of these cuts are occurring to people who have just paid down a substantial portion of their debts.  But the fear of a credit limit cut shouldn’t deter you from reducing your credit card debt.

From a common sense point of view, reducing the credit limits of people who pay down credit card debt makes little sense.  After all, these people are demonstrating the ability to pay their bills and a desire to reduce their debt.  One would think these types of customers would please banks.  Yet, in the perverse world of post-CARD Act lending, repaying credit card debt has become a trigger for painful credit limit cuts. Continue Reading »

On February 22nd, everyone under 21 will find getting a credit card to be significantly more difficult than it was the day before.  On that day, provisions of the CARD Act that will require the under 21 crowd to have “sufficient income” or a legal guardian to co-sign credit card applications.  Unfortunately, this will likely cause significant problems for a broad swath of young Americans, resulting in increased lending costs when they leave college.  On the student credit card issue, the authors of the CARD Act may have gone too far.  And here are just a few reasons why: Continue Reading »

As the deadline for the new credit card laws quickly approaches, credit card companies will be sending out details on how the CARD Act will effect your credit card account.  Some companies may include revised terms and conditions in your monthly statement.  Other companies may send out notices that can easily be mistaken for the credit card solicitations many have grown accustomed to throwing in the garbage.  Either way, it is crucial to carefully review all communications from your credit card companies, especially if they are tied to accounts you rarely use. Continue Reading »

While it is already to late for many people who have endured massive interest rate increases during the past year to benefit from the protections provided by the new credit card laws, consumers still need to keep a watchful eye on any mail that comes from credit card companies.  Arbitrary rate increases as well as other changes in terms are still legal for the next month, so even if you’ve managed to escape a 29.99% rate increase so far, there’s still a chance you could be hit in the next month. Continue Reading »

When the new credit card laws take effect on February 22nd, banks will no longer be able to raise interest rates on your existing balances for no reason.  In fact, they won’t even be able to raise interest rates on your balances if you are 59 days late.  However, even if you never miss a payment, credit card companies can still raise your interest rates on future purchases with 45 days notice. Continue Reading »

Editor’s Note:  This post, which went live in December of 2008, is getting a bit dated.  It deals with the original proposals and is, in essence, an historical document detailing the original plans for new credit card laws.  For more relevant (and recent) news on the new credit cards laws, please see New Credit Card Laws and Interest Rate Increases, a recent post dealing with the new laws set to come into effect February 22nd of this year. Continue Reading »