Credit Card Industry Not Happy About New Rules
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It’s not terribly surprising that the credit card industry is not happy about the new credit card rules passed by the Senate. While the House still has to agree to the Senate version of the bill, compromise is expected, and there are hopes that President Obama can sign the credit card bill by Memorial Day. The stock market doesn’t appear to really care about the news; investors are more focused on signs that the economy is recovering than they are on specific woes afflicting credit card issuing banks.
How you might be affected by the new credit card rules
Consumer protection is what is in mind with the new credit card rules. Unfortunately, credit card companies will have 9 months to act with a certain amount of depravity before the rules take effect. Among the rules that will limit the damage credit card companies can do to you are these:
- 45 days’ notice is required for changes to cardholder terms. This includes rewards programs, interest rates and other terms. 45 days should be sufficient for you to change what needs to be changed.
- Statements must be sent out 21 days before the due date.
- Over the limit fees can no longer be charged unless you give permission to go ahead when you have reached your limit.
- No retro interest rates on existing balances unless you are 60 days overdue on your payments.
- No more early morning deadlines for credit card payments. 5 p.m. is the new deadline.
- Banks must apply payments to higher rate debt first.
- Those under 21 with no proof of income must have a co-signer to get a credit card.
These new rules are expected to make it tougher for many to get credit. But is that such a bad thing? Perhaps it will force us all to think twice before we use credit. It could be a very positive development that provides us with incentive to carefully consider our spending practices and adopt those that are better for us.
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May 20th, 2009 at 11:06 am
[…] is getting things done on behalf of the people it is supposed to represent. The Senate just passed new credit card rules that have more teeth than those passed last December by the Fed, and the credit card industry is not […]