The senate passes a new bill that basically tells the credit card companies that you suck and you are screwed. In a landslide vote of 90-5, the senate has voted on a bill that will give credit card companies only nine months to reduce its fees and add more restrictions on how they normally screw consumers. Among the different changes are:
- Allow customers to pay their bill on the phone and internet without an additional charge
- Let customers spare themselves from over the limit fees
- Give 45 day notice to customers before they can increase the interest rates
- Consumers under 21 must provide proof that they can repay the loans before they can get a credit card (or have proof that a parent or guardian will)
- Cardholders will need to opt in before they are allowed to go over their credit limit
- A consumer must be at least 60 days late before the interest rate can be increased
- The interest rate must go back down to normal levels after 6 months of paying at least the minimum on time
At first glance, this is a win for credit card holders but I’m actually not so sure. As someone who pays credit cards in full on time and everytime, I fear that credit card companies will just have to slash reward programs in order to make more money. As with anything, there’s always a winner and a loser and who knows what will happen?
What do you think?
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{ 3 comments… read them below or add one }
I think it means that they’re going to cancel everyone who is teetering on the brink, and then extend credit only to the very highest credit ratings. If your score is below, say, 750? 800? You’re going to end up with a $300 credit limit and 29.99% interest.
I’m not saying it’s a bad thing, necessarily. We need to learn to live within our means.
Also, the line “Give 45 day notice to customers before they can interest the interest rates” should probably be “Give 45 day notice to customers before they can raise the interest rates.”
Thanks, it’s been corrected.
I agree that this just means they will be on the conservative side and most people who have enjoyed benefits will have all of that reduced.
It will be interesting how exactly it will play out though but either way, someone like me who pays everything in full will just have less benefits from credit cards in the future with this bill.
Too bad the credit card companies turned around and screwed us! Last week I got 3 notices that my credit cards’ interest was being jacked up 15%-20% to absolutely insane rates! They gave me my 45 days notice though…. thank you Obama! LOL