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Credit card Reform...How will this affect the economy?

Meltdown 101: Credit card reforms begin to kick in

By EILEEN AJ CONNELLY (AP) – 1 hour ago

NEW YORK — New rules meant to give credit card users more information and stop policies that many consider abusive are starting to take effect.

While the bulk of the Credit CARD Act — as in "credit card accountability, responsibility, and disclosure" — won't kick in until February, two provisions aimed at helping consumers understand their banks' practices become mandatory starting Thursday.

Once the rules are fully in place, credit card users will have an easier time figuring out the terms of their cards and will be able to refuse to pay higher interest rates and fees. In the meantime, however, some card companies are using the time lag to raise costs to consumers while they still can.


Asked by Anonymous at 5:26 PM on Aug. 19, 2009 in Politics & Current Events

This question is closed.
Answers (7)
  • If a Harvard contract law professor cannot understand a credit card agreement, how can an average person understand one?



    Answer by rkoloms at 6:03 PM on Aug. 19, 2009

  • Credit Cards aren't mandatory. You can NOT have them, then it doesn't matter. Every crappy thing that credit card companies do is in the fine print, And if they are jacking up the prices and you don't like it, get rid of the card. done.


    Answer by Anonymous at 5:40 PM on Aug. 19, 2009

  • My problem is reading the tiny print. LOL I wonder if thats in the bill. LOL
    Anyway I don't think it will matter much. The banks have had plenty of time to raise rates and lower
    limits. Obama didn't do us any favors. I closed 2 of mine because they were going to raise my rates. It's better to live on what you make anyway.

    Answer by itsmesteph11 at 6:16 PM on Aug. 19, 2009

  • rkolomos thanks for the video. OP

    Answer by Anonymous at 6:29 PM on Aug. 19, 2009

  • The only credit card I have EVER had (hubby too) is American Express. By HAVING to pay off the entire balance each month, they do not assess any interest, and it keeps you from going overboard. BUT, should you find yourself on a spending spree and then unable to pay for whatever reason, all they do is freeze your card until you DO pay off the balance--happened a couple of times when I was in college--(again, no interest), which ALSO helps to keep you from spiraling out of control!

    This is how one eventually learns to become fiscally conservative and responsible!

    Answer by LoriKeet at 8:09 PM on Aug. 19, 2009

  • The problem is, if you never have revolving credit, you are seen as a poor credit risk. I paid everything in cash for years, and then went to buy a car, and had not so great credit. My SL and my one or two closed cards from dept stores that I used, and then closed, didn't do all that much for me. You need to carry a little credit, and some of it needs to be revolving, so that lenders can see that you know how to budget, and manage your finances. they say. I think that the credit companies do need to be reined in. They are absolute vultures. I have one CC, and two store cards. My one card, I have had for 8 years, and even though it's through a CU and they are really overall pretty great, I still have to watch them.

    It's unfortunate - it's hard to get basic loans for a car, even a used one, or a house without some credit that involves a card. Although I do think ppl are stupid, and this shows it....

    Answer by LiliM at 8:18 PM on Aug. 19, 2009

  • Did any of you get a letter from Chase credit cards, changing your payment from 2% to 5% of the balance as of Sept. 1st? This is a big jump!

    Answer by agentwanda at 9:23 PM on Aug. 19, 2009