Senate passes credit card overhaul bill

[ShaE]

http://news.aol.com/article/senate-oks-bill-to-reign-in-credit-card/490354?cid=12

Senate passes credit card overhaul bill

By ANNE FLAHERTY

AP
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<!-- Enhancement List size = 0 -->WASHINGTON -The Senate voted overwhelmingly on Tuesday to rein in credit card rate increases and excessive fees, hoping to give voters some breathing room amid a recession that has left hundreds of thousands of Americans jobless or facing foreclosure.
The House was on track to pass the measure as early as Wednesday, paving the way for President Barack Obama to see the bill on his desk by week's end.
"This is a victory for every American consumer who has ever suffered at the hands of a credit card company," said Sen. Christopher Dodd, D-Conn., chairman of the Banking Committee. The bill passed the Senate 90-5.
If enacted into law as expected, the credit card industry would have nine months to change the way it does business: Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone without an added fee. They'd also have to give consumers a chance to spare themselves from over-the-limit fees and provide 45 days notice and an explanation before interest rates are increased.
Some of these changes are already on track to take effect in July 2010, under new rules being imposed by the Federal Reserve. But the Senate bill would put the changes into law and go further in restricting the types of bank fees and who can get a card.
For example, the Senate bill requires those under 21 who seek a credit card to prove first that they can repay the money or that a parent or guardian is willing to pay off their debt if they default.
The legislation would not cap interest rates as some lawmakers had hoped. It also wouldn't prevent lenders from finding new ways to drain customers' bank accounts or keep consumers from spending money they don't have.
But it would give spenders more flexibility and outlaw many of the surprise costs associated with credit cards at a time when money is tight in most households. For example, under the bill, a cardholder would have to opt to be allowed to go over a credit limit. If customers don't agree and the bank authorizes a charge that would push them over their limit, the lender couldn't levy an over-limit fee.
Another boon for consumers is limiting a practice known as "universal default," when a lender sharply increases a cardholder's interest rate on an existing balance because the customer is late paying that bill or other, unrelated bills. Under the new legislation, a customer would have to be more than 60 days behind on a payment before seeing a rate increase on an existing balance.
Even then, the credit card company would be required to restore the previous, lower rate after six months if the cardholder pays the minimum balance on time.
The banking industry opposed the overall measure and said it could restrict credit at a time when Americans need it most. Banking officials defended their existing interest rates and fees on grounds that their business — lending money to consumers with no collateral and little more than a promise to pay it back — is very risky.
"What has been a short-term revolving unsecured loan will now become a medium-term unsecured loan, which is significantly more risky," said Edward Yingling, president and CEO, American Bankers Association.
"It is a fundamental rule of lending that an increase in risk means that less credit will be available and that the credit that is available will often have a higher interest rate," Yingling added.
But members of Congress didn't want to face voters in the 2010 election without proof that they are listening to constituents crushed by foreclosure rates and joblessness. Recent reports show that the number of foreclosures jumped 32 percent in April compared with the same month last year, while the jobless rate that month rose to 8.9 percent.
House Democratic leaders said they planned to move quickly. The House had already endorsed a similar credit card bill by Rep. Carolyn Maloney, D-N.Y.
Complicating the issue somewhat was a measure added to the Senate bill that would allow people to carry loaded guns in national parks and wildlife refuges. That provision, sponsored by Sen. Tom Coburn, R-Okla., passed, 67-29.
House Democratic Leader Steny Hoyer, D-Md., told reporters on Tuesday that the House might vote separately on the gun proposal so as not to bog down the credit card overhaul.
If the two bills are passed separately as expected, they would be rejoined before being sent to the president as a single bill, said Hoyer, D-Md.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

[jameznyhc]

yeah and guess what no more grace period lol .. if you pay on time your punished

[ShaE]

what do you mean if you pay on time you're punished? how could you be punished for paying on time?

[jameznyhc]

what do you mean if you pay on time you're punished? how could you be punished for paying on time?


loosing the grace period

[metfan85]

Well it's clear that government knows better than private industry how to run a business. It's been happening since 1913 with the federal reserve and the New Deal, Truman trying to nationalize steel, Nixon and his price controls, Bush giving cronies billions and Obama outright telling businesses who to hire, how to pay them, what to charge, so why don't we just nationalize everything?

our new battle cry will be NATIONALIZE THE HOT DOG VENDORS! :yipee It'll be so much better for us all.

[ShaE]

i don't understand how losing a grace period is a punishment, if you pay on time you don't need any grace period. how would not having one available be punishing you?

[ShaE]

Well it's clear that government knows better than private industry how to run a business. It's been happening since 1913 with the federal reserve and the New Deal, Truman trying to nationalize steel, Nixon and his price controls, Bush giving cronies billions and Obama outright telling businesses who to hire, how to pay them, what to charge, so why don't we just nationalize everything?

our new battle cry will be NATIONALIZE THE HOT DOG VENDORS! :yipee It'll be so much better for us all.
i don't understand where you get this from, you see no good in reigning in some of the shady practices creditors engage in?

you don't think restricting how they can solicit college kids for credit is good? you don't think any of this is positive?

[jameznyhc]

i don't understand how losing a grace period is a punishment, if you pay on time you don't need any grace period. how would not having one available be punishing you?

because that 30 day window is a huge advantage for both people struggling..and or people who arent struggling cause you get a 30 day window if you have a tight month and it wont fuck with your credit or interest rate .. the banks are laughing now cause they will rack up!! ...thats what happens when you try to regulate ..

[ShaE]

because that 30 day window is a huge advatage for people struggling..and or people who arent struggling cause you get a 30 day window if you have a tight month .. the banks are laughing now cause they will rack up!! ...thats what happens when you try to regulate ..
and look what happens when you don't regulate, you see a positive picture in either somehow? you don't think there needs to be a medium somewhere? it's all or nothing?

a tight month puts you behind 30 days in your bills? you don't budget very well then, that's a bit nutty.

[jameznyhc]

and look what happens when you don't regulate, you see a positive picture in either somehow? you don't think there needs to be a medium somewhere? it's all or nothing?

a tight month puts you behind 30 days in your bills? you don't budget very well then, that's a bit nutty.

Not me im talking about the people who cant manage to pay on time with the grace period .. OR people who just like to take advantage of the window who dont struggle they get hurt ..either way the banks wioll rack up much more going this route .. especially in a really bad economy

the people who pay within the grace period get punished now by loosing this .. you have to realize not everyone is a slaried worker ..so a grace period can give someone capital and liquidity for 30 extra days with no penalty ..thats huge when your running a business or working on monthly commissions etc .. so now they taking that away from the people who played by the rules

[jameznyhc]

and the taxes is a whole other story lol..

[jameznyhc]

Well it's clear that government knows better than private industry how to run a business. It's been happening since 1913 with the federal reserve and the New Deal, Truman trying to nationalize steel, Nixon and his price controls, Bush giving cronies billions and Obama outright telling businesses who to hire, how to pay them, what to charge, so why don't we just nationalize everything?

our new battle cry will be NATIONALIZE THE HOT DOG VENDORS! :yipee It'll be so much better for us all.

Lol ..Small business is the engine of this country ..some people dont realize that when you start a business not only are you not profitable but your in debt ..whether it was from private investments you raised or went to a financial institution for a loan .. until you break even a tight month can very much hurt it an economy where 68% 18-49 yr old said they cut back spending lol ..Same can go for college students graduating way in the hole from loans, people are gonna get buried now ..and the banks are laughing while the assholes on the hill think they did a good thing ...

[James Maxx]

How about losing your credit card privileges after not paying 90 days. NOT giving cards to minors under 21 or allowing parents to freeze credit cards for minors until at least half the balance is paid?

As for grace periods I don't care about them. If you can't pay the bill within a week of getting it (at least minimum) then you shouldn't use a credit card.

This bill doesn't do enough for either side.

[jameznyhc]

How about losing your credit card privileges after not paying 90 days. NOT giving cards to minors under 21 or allowing parents to freeze credit cards for minors until at least half the balance is paid?

As for grace periods I don't care about them. If you can't pay the bill within a week of getting it (at least minimum) then you shouldn't use a credit card.

This bill doesn't do enough for either side.


thats true for the salaried worker whose pay rate does not change whether the economy is booming or a bust .. im talking about commissoned and business owners who do use the window as an advantage who earn what they produce..

[James Maxx]

thats true for the salaried worker whose pay rate does not change whether the economy is booming or a bust .. im talking about commissoned and business owners who do use the window as an advantage who earn what they produce..

I agree with that.

[ShaE]

Not me im talking about the people who cant manage to pay on time with the grace period .. OR people who just like to take advantage of the window who dont struggle they get hurt ..either way the banks wioll rack up much more going this route .. especially in a really bad economy

the people who pay within the grace period get punished now by loosing this .. you have to realize not everyone is a slaried worker ..so a grace period can give someone capital and liquidity for 30 extra days with no penalty ..thats huge when your running a business or working on monthly commissions etc .. so now they taking that away from the people who played by the rules

i realize you didn't mean yourself, i meant anybody

[sadelb]

These credit card companies are so shady. Giving people teaser rates of 3% with fine print in languages nobody but a lawyer can understand. Then 2 months later you are mysteriously at 29% for no good reason. Republicans just arguing for the heck of it. These credit card companies are taking advantage of anybody and everybody.

[metfan85]

These credit card companies are so shady. Giving people teaser rates of 3% with fine print in languages nobody but a lawyer can understand. Then 2 months later you are mysteriously at 29% for no good reason. Republicans just arguing for the heck of it. These credit card companies are taking advantage of anybody and everybody.

no they take advantage of no one and don't charge anyone anything unless you do NOT pay the money you borrowed from them.

[joeylima]

no they take advantage of no one and don't charge anyone anything unless you do NOT pay the money you borrowed from them.

exactly...people want to put the blame on EVERYBODY but the irresponsible people who put themselves in thousand of dollars of debt they cant afford

[sadelb]

no they take advantage of no one and don't charge anyone anything unless you do NOT pay the money you borrowed from them.


Right so my capital one credit card that I have never missed a payment and always pay in full mysteriously just went up to 28% for absolutely no reason.

[metfan85]

Right so my capital one credit card that I have never missed a payment and always pay in full mysteriously just went up to 28% for absolutely no reason.

In a free market (not that credit cards are a free market but at least they can set the market rate), when there is a recession interest rates tend to go up so they can raise capital. If they do not then they go out of business and you have no Capital One credit card. However you do NOT get charged that new higher interest rate if you pay on time, so what are you complaining about?

You're either lying or you don't understand how a credit card works, because if you always made your payments, the interest rate doesn't matter.


exactly...people want to put the blame on EVERYBODY but the irresponsible people who put themselves in thousand of dollars of debt they cant afford

I don't get how he always completely misunderstands what someone writes.

[Wysiwig]

In a free market (not that credit cards are a free market but at least they can set the market rate), when there is a recession interest rates tend to go up so they can raise capital. If they do not then they go out of business and you have no Capital One credit card. However you do NOT get charged that new higher interest rate if you pay on time, so what are you complaining about?



I think he'ssaying that he carries a balance but makes the monthly payment on time. Not that he pays the balance in full each month.

[ShaE]

exactly...people want to put the blame on EVERYBODY but the irresponsible people who put themselves in thousand of dollars of debt they cant afford
who says those are the only people getting screwed? my interest rates went up, my limits went down, I don't carry a balance, i dont pay late, and i'm certainly not "thousands of dollars in debt i can't afford"

just b/c i'm not paying this interest now, means i shouldn't care my credit limit went down and any balance I EVER DO carry is at a much higher interest rate now,through no fault of my own? i'm not supposed to care about that?

[ShaE]

credit card companies don't take advantage of anyone, pull my other leg, please.
let's stop acting like all business is fair and just, and if you have any problems w/ it, you must be an irresponsible retard living beyond your means.

[jameznyhc]

credit card companies don't take advantage of anyone, pull my other leg, please.
let's stop acting like all business is fair and just, and if you have any problems w/ it, you must be an irresponsible retard living beyond your means.

yeah well they will be laughing when they see the fees they get now ..not only on killing the grace period but many others said they will bring back the yearly fee as well .. thats what happens when you try to regulate

[metfan85]

credit card companies don't take advantage of anyone, pull my other leg, please.
let's stop acting like all business is fair and just, and if you have any problems w/ it, you must be an irresponsible retard living beyond your means.

If you don't charge beyond your means you won't have to pay the higher rates. It's pretty simple. You think people don't take advantage of credit card companies? How many people have defaulted on their payments and will never pay their bills?

They have to charge higher interest rates to dissuade more people from borrowing more money than they can afford it's pretty simple. They need to insulate themselves from the depression, otherwise you won't have credit card companies when the economy starts picking up again. But nah, let's Armchair General the credit card companies too.

Besides why don't you EVER, even ONCE, criticize the group who caused this mess? The federal reserve and it's monopoly on interest rates, no market can be called a free market that does not set it's own rates.

[joeylima]

who says those are the only people getting screwed? my interest rates went up, my limits went down, I don't carry a balance, i dont pay late, and i'm certainly not "thousands of dollars in debt i can't afford"

just b/c i'm not paying this interest now, means i shouldn't care my credit limit went down and any balance I EVER DO carry is at a much higher interest rate now,through no fault of my own? i'm not supposed to care about that?

i never said that, im all for some regulation....i never said u shouldnt care. i was simply stating that people like to put all of the blame on the big bad credit card companies for the credit mess, but there are a ton of irresponsible people out there who are just as much to blame.

[jameznyhc]

i never said that, im all for some regulation....i never said u shouldnt care. i was simply stating that people like to put all of the blame on the big bad credit card companies for the credit mess, but there are a ton of irresponsible people out there who are just as much to blame.

the only regulation needed is free market rules ..

[woo]

These credit card companies are so shady. Giving people teaser rates of 3% with fine print in languages nobody but a lawyer can understand. Then 2 months later you are mysteriously at 29% for no good reason. Republicans just arguing for the heck of it. These credit card companies are taking advantage of anybody and everybody.

this all started when the us supreme court made some ruling that state lines can be crossed for issuing credit bc the us mail would be the prime correspondence.
charging 29% interest in the state of new york is usery.. but in nevada its ok. as long as they use federal mailing system to correspond, nevada's lending laws apply to the rest of the country.
gotta love the supreme court eh?

mad shady... scandalous as fuck. if pple really knew this widespread truth it would be war.

[.laurenx.]

:applaud


Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone without an added fee
i had no idea that one of my CC's was charging me 7.95 everytime i paid my bill online. best part was i wasnt even using their online service. i do all my bill payments through citi.:disgusted

[woo]

If you don't charge beyond your means you won't have to pay the higher rates. It's pretty simple. You think people don't take advantage of credit card companies? How many people have defaulted on their payments and will never pay their bills?

They have to charge higher interest rates to dissuade more people from borrowing more money than they can afford it's pretty simple. They need to insulate themselves from the depression, otherwise you won't have credit card companies when the economy starts picking up again. But nah, let's Armchair General the credit card companies too..

u think that's the reason? pissing credit cards on campuses is more predatory when they give u t-shirts, frisbees, waterbottles, shiny keychains to college kids who are already in debt bc of student loans. cc co's are ruthless.
they actually have to tell pple that their interest rates are jacked now. they never did so b4. hello? why do u think?


Besides why don't you EVER, even ONCE, criticize the group who caused this mess? The federal reserve and it's monopoly on interest rates, no market can be called a free market that does not set it's own rates.
wrong. credit card company payment locations aren't in west bumblefuck bc the real estate is cheaper, it's bc if they tried to pull this shit in the states that many of their clients lived in, they would be breaking the law.

if u provide a loan to someone u can't charge whatever interest u like in new york. the gov't in our state did their fair share in trying to protect the citizens. other states failed at this but they are raking in mad tax revenue they aren't about to cut it out. lol imagine?

[woo]

yeah well they will be laughing when they see the fees they get now ..not only on killing the grace period but many others said they will bring back the yearly fee as well .. thats what happens when you try to regulate

what grace period r u talking about? most pple don't have one. i don't for any of my cards. if u already have one it doesn't say it will be removed. the cc co. decides that.
every 30 days there is a stamp on my account.

[jameznyhc]

what grace period r u talking about? most pple don't have one. i don't for any of my cards. if u already have one it doesn't say it will be removed. the cc co. decides that.
every 30 days there is a stamp on my account.

i got 25 day grace period ..most people do have one not many banks that dont offer it ..now as a way to recoup losses this was discussed on msnbc ..as was bringing back really high yearly fee's ..

[woo]

i got 25 day grace period ..most people do have one not many banks that dont offer it ..now as a way to recoup losses this was discussed on msnbc ..as was bringing back really high yearly fee's ..

well then these laws affect MOST ple who do not have a grace period. the deal you got is the deal that others will be protected by as well, more or less in that fashion.

ur arguing with the air.

[jameznyhc]

well then these laws affect MOST ple who do not have a grace period. the deal you got is the deal that others will be protected by as well, more or less in that fashion.

ur arguing with the air.

im not arguing at all ..my point is consumers who played by the rules will loose some good benefits offered by these lending institutions ..as a direct result of this legislation

[metfan85]

u think that's the reason? pissing credit cards on campuses is more predatory when they give u t-shirts, frisbees, waterbottles, shiny keychains to college kids who are already in debt bc of student loans. cc co's are ruthless.
they actually have to tell pple that their interest rates are jacked now. they never did so b4. hello? why do u think?
So going to schools to try to make a buck is predatory, interesting.

Seriously though, if we actually think this through, and not just make believe we think this through, we'd come to realize that they colleges to recruit new customers because odds are they are living off their parents. Logic tells you their parents won't let them default and will usually bail them out, so it's a safer bet for the credit card companies to give college student cards than college grads or hs grads not in college. This is assuming you're not responsible enough to only buy what you can afford.

Secondly, if not for those credit card companies being predatory, college age students will not have an opportunity to build their credit history. But again that's just details, who really cares about the truth? LOL



wrong. credit card company payment locations aren't in west bumblefuck bc the real estate is cheaper, it's bc if they tried to pull this shit in the states that many of their clients lived in, they would be breaking the law.

if u provide a loan to someone u can't charge whatever interest u like in new york. the gov't in our state did their fair share in trying to protect the citizens. other states failed at this but they are raking in mad tax revenue they aren't about to cut it out. lol imagine?

Ok, I could be wrong if I was talking about whatever it is you're talking about (which by the way I have NO clue what that is). But since, I am not talking about that at all, not even close, I'm just going to assume you misread what I wrote.

PS I was talking about the bubble and the bubble/profligacy culture as a whole being caused by the federal reserve.

[ShaE]

i never said that, im all for some regulation....i never said u shouldnt care. i was simply stating that people like to put all of the blame on the big bad credit card companies for the credit mess, but there are a ton of irresponsible people out there who are just as much to blame.
i didn't say people weren't to blame, it sounded like you were placing ALL the blame on them, sorry if i misunderstood you :)

[ShaE]

:applaud


Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone without an added fee
i had no idea that one of my CC's was charging me 7.95 everytime i paid my bill online. best part was i wasnt even using their online service. i do all my bill payments through citi.:disgusted
i do my bill pymts thru citi too, i never saw an extra charge, now I'm gonna go check. that would piss me off.

i get tons of thank you pts paying my bills all thru citi lol

[James Maxx]

Hey its all good sooner or later these credit card companies will be left with late-paying ******-rich customers that don't know how to read. Let them make money off these deadbeats because the people who pay on time and over the minimum can just cancel their cards because after a while, the rewards won't be worth it if they charge annual fees and remove grace periods.

[James Maxx]

:applaud


Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone without an added fee
i had no idea that one of my CC's was charging me 7.95 everytime i paid my bill online. best part was i wasnt even using their online service. i do all my bill payments through citi.:disgusted

How do you not know that? Don't you read your statement?

[joeylima]

Hey its all good sooner or later these credit card companies will be left with late-paying ******-rich customers that don't know how to read. Let them make money off these deadbeats because the people who pay on time and over the minimum can just cancel their cards because after a while, the rewards won't be worth it if they charge annual fees and remove grace periods.

LOL...what he said

[woo]

im not arguing at all ..my point is consumers who played by the rules will loose some good benefits offered by these lending institutions ..as a direct result of this legislation

how do you know this will happen? this is a regulation but it doesn't mean banks who do not fall under the targeted action will be forced to change.


So going to schools to try to make a buck is predatory, interesting.

Seriously though, if we actually think this through, and not just make believe we think this through, we'd come to realize that they colleges to recruit new customers because odds are they are living off their parents. Logic tells you their parents won't let them default and will usually bail them out, so it's a safer bet for the credit card companies to give college student cards than college grads or hs grads not in college. This is assuming you're not responsible enough to only buy what you can afford.

Secondly, if not for those credit card companies being predatory, college age students will not have an opportunity to build their credit history. But again that's just details, who really cares about the truth? LOL


problem with those odds is this is not what actually happened.

and the secondly part, there is a diff btwn having a service available and having pple flirt sing and dance u while ur on your lunch break in school to give you something you are not seeking. they made it like a party i clearly remember this. i was actually there i dont have to think too hard to imagine something i only need to recall.





Ok, I could be wrong if I was talking about whatever it is you're talking about (which by the way I have NO clue what that is). But since, I am not talking about that at all, not even close, I'm just going to assume you misread what I wrote.

PS I was talking about the bubble and the bubble/profligacy culture as a whole being caused by the federal reserve.

http://www.fdic.gov/bank/analytical/bank/bt_9805.html

this is the supreme court case that is much more responsible than your "bubble/profligacy culture as a whole being cased by the federal reserve."

i studied it for days... with a 2 hour lecture. no pretending to think it through.

[woo]

http://en.wikipedia.org/wiki/Marquette_Nat._Bank_of_Minneapolis_v._First_of_Oma ha_Service_Corp.

think it through now

[metfan85]

how do you know this will happen? this is a regulation but it doesn't mean banks who do not fall under the targeted action will be forced to change.



problem with those odds is this is not what actually happened.

and the secondly part, there is a diff btwn having a service available and having pple flirt sing and dance u while ur on your lunch break in school to give you something you are not seeking. they made it like a party i clearly remember this. i was actually there i dont have to think too hard to imagine something i only need to recall.




http://www.fdic.gov/bank/analytical/bank/bt_9805.html

this is the supreme court case that is much more responsible than your "bubble/profligacy culture as a whole being cased by the federal reserve."

i studied it for days... with a 2 hour lecture. no pretending to think it through.
HOLY CRAP I'M NOT TALKING ABOUT CREDIT CARDS! :heythere I don't care what lectures you listened, it's not what I'm talking about WOW :wallbang you're lecture might be great if that was the topic I was talking about :wallbang

and so what if they make it seem like a party? I have a credit card I'm a student and I'm doing just fine. People should start taking care of themselves instead of letting Washington do it for them.

and yes the odds are what happened, thats why it's the "ODDS ON" favorite.

[sadelb]

In a free market (not that credit cards are a free market but at least they can set the market rate), when there is a recession interest rates tend to go up so they can raise capital. If they do not then they go out of business and you have no Capital One credit card. However you do NOT get charged that new higher interest rate if you pay on time, so what are you complaining about?

You're either lying or you don't understand how a credit card works, because if you always made your payments, the interest rate doesn't matter.
.


Why the hell would I lie about that. I DO NOT have to pay that high interest rate because I do pay my whole bill on time every single month. But its just the principle of the matter that they raised it to a disgustingly high rate out of nowhere. So if next month I do decide to pay half of it I am going to be paying 29% interest on the other half. My whole argument is that its not right for a company to take advantage of people in this manner. Raising my credit card rate to 29% when I have never missed a payment. Those aren't fair business practices and I'm happy this whole thing is getting changed.

[woo]

HOLY CRAP I'M NOT TALKING ABOUT CREDIT CARDS! :heythere I don't care what lectures you listened, it's not what I'm talking about WOW :wallbang you're lecture might be great if that was the topic I was talking about :wallbang

and so what if they make it seem like a party? I have a credit card I'm a student and I'm doing just fine. People should start taking care of themselves instead of letting Washington do it for them.

and yes the odds are what happened, thats why it's the "ODDS ON" favorite.

sorry i was sticking to the subject of the thread. silly me.

i should have known with the internet renaissance man that he was above and beyond lol

[metfan85]

sorry i was sticking to the subject of the thread. silly me.

i should have known with the internet renaissance man that he was above and beyond lol

you should have known lol.

seriously I didnt mean to get angry, but I was asking someone else a question, that was related, but not to what you were talking about. You kept saying I was wrong about something I didn't even address

[jameznyhc]

Why the hell would I lie about that. I DO NOT have to pay that high interest rate because I do pay my whole bill on time every single month. But its just the principle of the matter that they raised it to a disgustingly high rate out of nowhere. So if next month I do decide to pay half of it I am going to be paying 29% interest on the other half. My whole argument is that its not right for a company to take advantage of people in this manner. Raising my credit card rate to 29% when I have never missed a payment. Those aren't fair business practices and I'm happy this whole thing is getting changed.

cause you didnt read the terms? ..[please spare me your sob story and take some fuckin responsibility .. i have capital one and for 6 months i had 0% ...after that i knew the high 20's were coming ... how? ..i read my fuckin styatement lol

[ShaE]

it's his responsibility that the terms were changed??? jamez, you do realize they can change it ( at least now) w/o notifying you, and then suddenly it just APPEARS on your statement, and what do you do then?

it's already been done, they don't notify you they're raising your interest rate.

what are you babbling about?

[woo]

HOLY CRAP I'M NOT TALKING ABOUT CREDIT CARDS! :heythere I don't care what lectures you listened, it's not what I'm talking about WOW :wallbang you're lecture might be great if that was the topic I was talking about :wallbang

and so what if they make it seem like a party? I have a credit card I'm a student and I'm doing just fine. People should start taking care of themselves instead of letting Washington do it for them.

and yes the odds are what happened, thats why it's the "ODDS ON" favorite.

if i were u id be banging my head against the wall too with that hard head of yours...to allow some sensible information in there.
the odds whatever did not happen. pple entering college 10+ years ago are in huge consumer debt. today its nothing like it used to be on college campuses. nothingggg!
many of their parents did not bail the out like your retro odds predicted. hence the senate bill in question in this thread.

that supreme court case is the reason why and that is how usury laws within states may as well be nulled. usury is a crime companies bypassed this...

try reading up the wiki reference i posted and learn HOW we came to this. and the argument "o pple should know how to manage with 29% SURPRISE interest" is a pride argument. (this isnt about you and me personally) it is sensible if it wasn't a surprise and if they indeed deserve to have their interests raised. but they are raised by SURPRISE and for NO REASON! banks are failing bc they pissed credit and pple are paying that price thru interest rates? their credit pissing stupidity threw off the entire economy ... all credit summated that is.
it's a disgusting practice. GOOD RIDDEN!

[sadelb]

The fact is the way these credit card companies do business is very unethical.

[Benny B]

it's his responsibility that the terms were changed??? jamez, you do realize they can change it ( at least now) w/o notifying you, and then suddenly it just APPEARS on your statement, and what do you do then?

it's already been done, they don't notify you they're raising your interest rate.

what are you babbling about?

its called the universal default provision.. umm HELLLOOO its on every credit card you sign up for.. .

[Chris]

i don't understand how losing a grace period is a punishment, if you pay on time you don't need any grace period. how would not having one available be punishing you?

don't you understand every conservative or republican will cry about this now. I just had this same convo with my good friend...

hes like now since they can't punish the people who aren't paying they are going to punish the people who pay....

ya OK.. and the credit industry then will make more NON payers and eventyually go completely broke.

i don't see how these morons talk about everyhtnig as its

well punish the guy paying

punish th ehard worker

"DON"T DARE take my fuckin mercedes and credit cards up the ass, cause i can pay, even tho the rest of the entire country fell into the water and drowned. Even tho lets look at the reason why sonmeone needs all that credit to live in the first place. I earned my keep i should be allowed to continue my lifestyle as is no?"

if you have more than a few k, in credit card bills your a sucker. simple as that its not anyones fault for you wracking up that much debt. you want to blame someone else for you having no grace period?

how bout have no debt.... Period.

No...

in desperate times there is need for despereate measures that means this is not about YOU as the individual but whats better for US as a whole. you selfish motherfucking morons who think only about themselves and how they can hold onto whatever insignificant wealth they do have even if it means stepping on the necks of others please round you all up, and slap yourselves into a silly lather. until you realize that if WE don't succeed as a whole YOU fail as an individual by default.

sloth.

HI ShaE ! hows it going. ;-) I love this forum i can leave for months and come back and see that zero progress has been made on the front of ignorance.

[jameznyhc]

don't you understand every conservative or republican will cry about this now. I just had this same convo with my good friend...

hes like now since they can't punish the people who aren't paying they are going to punish the people who pay....

ya OK.. and the credit industry then will make more NON payers and eventyually go completely broke.

i don't see how these morons talk about everyhtnig as its

well punish the guy paying

punish th ehard worker

"DON"T DARE take my fuckin mercedes and credit cards up the ass, cause i can pay, even tho the rest of the entire country fell into the water and drowned. Even tho lets look at the reason why sonmeone needs all that credit to live in the first place. I earned my keep i should be allowed to continue my lifestyle as is no?"

if you have more than a few k, in credit card bills your a sucker. simple as that its not anyones fault for you wracking up that much debt. you want to blame someone else for you having no grace period?

how bout have no debt.... Period.

No...

in desperate times there is need for despereate measures that means this is not about YOU as the individual but whats better for US as a whole. you selfish motherfucking morons who think only about themselves and how they can hold onto whatever insignificant wealth they do have even if it means stepping on the necks of others please round you all up, and slap yourselves into a silly lather. until you realize that if WE don't succeed as a whole YOU fail as an individual by default.

sloth.

HI ShaE ! hows it going. ;-) I love this forum i can leave for months and come back and see that zero progress has been made on the front of ignorance.

its not going to help people struggling either lol .. they will feel these new fees and no grace period the hardest..

[ShaE]

its called the universal default provision.. umm HELLLOOO its on every credit card you sign up for.. .
and it doesn't make it right

[Benny B]

and it doesn't make it right

it makes it right when you AGREE and SIGN on the bottom line..

[ShaE]

it makes it right when you AGREE and SIGN on the bottom line..
no, it still doesn't make the practice right, still doesn't mean it shouldn't be changed.

you're not following me

[Benny B]

no, it still doesn't make the practice right, still doesn't mean it shouldn't be changed.

you're not following me

it doesnt make a flying fuck of a difference if you think its "right or wrong" because in the end.. you agreed to the terms regardless if you agree with them or not you signed on the bottom line making it RIGHT. if you dont agree to any of the terms. its simple dont get a fucking credit card. .

[ShaE]

b/c i agreed to it, doesn't make the practice right, doesn't mean somebody in a position of power shouldn't take action against it.

i'm not disputing whether or not i agreed to any terms,and i'm not upset b/c i'm not in credit trouble, but i definitely believe their practices can be improved upon

apparently you think anything goes

[Benny B]

b/c i agreed to it, doesn't make the practice right, doesn't mean somebody in a position of power shouldn't take action against it.

i'm not disputing whether or not i agreed to any terms,and i'm not upset b/c i'm not in credit trouble, but i definitely believe their practices can be improved upon

apparently you think anything goes

if you sign on the bottom line you agree to their terms.. i believe anything should go if you are agreeing to it.. you know how you fight against it.. dont use a credit card.. but you have too many stupid people in this country that think they actually need credit cards.. umm helllooo you using THEIR Money and should be subject to THEIR rules if you are using a credit card..

sorry if people are stupid enough to sign on teh bottom line and dont understand what they are doing or getting into and all of a sudden now the credit card company is the "bad guy" the only one who is wrong is the people who sign on the bottom line agreeing to said terms.. if you dont agree with it.. its simple.. you dont sign on the bottom line and you never have a problem with said practices...

[sadelb]

Either way the system is getting changed. So obviously enough people felt the practice wasn't right.

[.laurenx.]

How do you not know that? Don't you read your statement?

i do read my statement but to be honest i focus on the new transactions. the fee was listed with finance charges and some other services i use with that particular CC ( like a protection plan if i lose my job etc).


i mean who the hell thinks that they would get charged for paying their bill when they're using their bank's bill payment services. it's absurd

[James Maxx]

i do read my statement but to be honest i focus on the new transactions. the fee was listed with finance charges and some other services i use with that particular CC ( like a protection plan if i lose my job etc).


i mean who the hell thinks that they would get charged for paying their bill when they're using their bank's bill payment services. it's absurd

Were talking credit card companies they can do whatever they want lol believe me its gonna get worse they know people don't fully read their statement they just pay whatever so they will charge a few bucks here and there not many people would care.

[metfan85]

i do read my statement but to be honest i focus on the new transactions. the fee was listed with finance charges and some other services i use with that particular CC ( like a protection plan if i lose my job etc).


i mean who the hell thinks that they would get charged for paying their bill when they're using their bank's bill payment services. it's absurd

You do realize they provide a service for you and you are voluntarily agreeing to it? You're not being charged for nothing, and there's no threat of violence if you don't use this service. So where is the problem?

It's not really too absurd if you have ever bought tickets from an online vendor instead of the box office, there is always a convenience charge. Whether or not the convenience charge is fair, is irrelevant, because there is no threat of violenceif you don't use that service.

[.laurenx.]

You do realize they provide a service for you and you are voluntarily agreeing to it? You're not being charged for nothing, and there's no threat of violence if you don't use this service. So where is the problem?

It's not really too absurd if you have ever bought tickets from an online vendor instead of the box office, there is always a convenience charge. Whether or not the convenience charge is fair, is irrelevant, because there is no threat of violenceif you don't use that service.

yes, i am being charged for nothing.


if i whipped out my citibank checkbook and wrote out a check = free

if i use my billpay service through citibank, which ironically, sends out a papercheck to this particular company bc they dont have electronic billpay available = $7.95

expalin the logic of that one.

[metfan85]

yes, i am being charged for nothing.


if i whipped out my citibank checkbook and wrote out a check = free

if i use my billpay service through citibank, which ironically, sends out a papercheck to this particular company bc they dont have electronic billpay available = $7.95

expalin the logic of that one.

no you're not being charged for nothing, the 7.95 is the opportunity cost of you getting up and walking to the bank to make a payment.

If the 7.95 was to much people would stop using it and they'd lower the price or get rid of it all together.

[.laurenx.]

no you're not being charged for nothing, the 7.95 is the opportunity cost of you getting up and walking to the bank to make a payment.

If the 7.95 was to much people would stop using it and they'd lower the price or get rid of it all together.

u lost me .why in the hell would i walk to the bank??????????




citi isnt charging me. the credit card is charging me.

this = free
http://www.ct-corp.net/echeck/echeck.jpg


this=7.95
https://web.da-us.citibank.com/images/checksample.gif


explain.

[jameznyhc]

u lost me .why in the hell would i walk to the bank??????????




citi isnt charging me. the credit card is charging me.

this = free
http://www.ct-corp.net/echeck/echeck.jpg


this=7.95
https://web.da-us.citibank.com/images/checksample.gif


explain.

its charging you for the electronic transfer of funds ...when you pay by check its free correct?

[ShaE]

don't you see the stupidity in charging somebody for making a payment? or for the means used for making payment?

[.laurenx.]

its charging you for the electronic transfer of funds ...when you pay by check its free correct?

negative.



if i whipped out my citibank checkbook and wrote out a check = free

if i use my billpay service through citibank, which ironically, sends out a papercheck to this particular company bc they dont have electronic billpay available = $7.95

expalin the logic of that one.

[.laurenx.]

don't you see the stupidity in charging somebody for making a payment? or for the means used for making payment?

lol its amazing. anything for an arguement with these ppl.

[Andrew Thomas]

u lost me .why in the hell would i walk to the bank??????????

.

walk into the bank to save the 7.95 but most people will just pay the 7.95 and suck it up because they are to lazy or dont have time to go to bank

[.laurenx.]

walk into the bank to save the 7.95 but most people will just pay the 7.95 and suck it up because they are to lazy or dont have time to go to bank

lolol but the bank has nothing to do with it.:wallbang

one more time and than i give up lol


my credit card charged me 7.95 for making a payment by using my bank's (citibank) online bill pay service. now if i take my checkbook out and write them a check, it's free. if i use citibanks service WHICH also mails them a paper
check, it's 7.95

the only difference is the appearence of checks like i already posted above.

[jameznyhc]

lolol but the bank has nothing to do with it.:wallbang

one more time and than i give up lol


my credit card charged me 7.95 for making a payment by using my bank's (citibank) online bill pay service. now if i take my checkbook out and write them a check, it's free. if i use citibanks service WHICH also mails them a paper
check, it's 7.95

the only difference is the appearence of checks like i already posted above.

lol again send a check its for free!!! .. the 7.95 is obviously a processing fee .. the point is your not forced to pay it, they notified you about it ...

[woo]

its charging you for the electronic transfer of funds ...when you pay by check its free correct?

a digital code swap costs more than paper, postage, manhandling and data entry costs?

[jameznyhc]

a digital code swap costs more than paper, postage, manhandling and data entry costs?

:shrugger she said when she pays online citi sends a paper check out ..just as she would .. so she wondering why she being charged for the checks citi send out .. my guess is it has to do with processing ..bottomline is if she mails a check the cell phone compamny dont charge her ..she was notified..she has a choice.. she is an adult ..

[.laurenx.]

lol again send a check its for free!!! .. the 7.95 is obviously a processing fee .. the point is your not forced to pay it, they notified you about it ...

:wallbang:wallbang


i love how ur telling me to send a check lmfao :wallbang:wallbang

obviously i send checks now that im aware of it. i was just stating how ridiculous it is and how happy ill be when it becomes ILLEGAL FOR THEM TO CHARGE ME FOR PAYING ONLINE.


holy shit i didnt think it would be so hard to explain to u ppl lol

[jameznyhc]

:wallbang:wallbang


i love how ur telling me to send a check lmfao :wallbang:wallbang

obviously i send checks now that im aware of it. i was just stating how ridiculous it is and how happy ill be when it becomes ILLEGAL FOR THEM TO CHARGE ME FOR PAYING ONLINE.


holy shit i didnt think it would be so hard to explain to u ppl lol

how can that be illegal is beyomnd me .. and if it is.. how is that not striaght up socialism? ...what you want the govt to run private companies now? .. why not just send a check or find a different bank or different cell provider if your not happy? ... but you want to govt to force a company to provide a service for free cause your to lazy to mail an enevolope?? .. thats the problem in this country

[.laurenx.]

how can that be illegal? ...what you want the govt to run private companies now? .. why not just send a check or find a different bank or different cell provider if your not happy? ... but you want to govt to force a company to provide a service for free cause your to lazy to mail an enevolope?? .. thats the problem in this country

jesus tap dancing christ.


:applaud


Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone without an added fee

i wont even entertain the rest of the BS u posted about me being lazy bc ur a joke

[jameznyhc]

jesus tap dancing christ.

i edited i wasnt done

[jameznyhc]

secondly what if they now they loose the 7.95 ...and people continue to pay online ...and the fee is not bullshit ..EVERYONE PRICES GO UP ..lol ..so they will only make the problem much worse

[James Maxx]

I can understand all the anger with the banks charging 30% interest, late fees, processing fees etc. but also remember you are not forced to use credit cards. Read the fine print one day they can basically charge and do whatever they want. You "agreed" to it.

Bottom line: stay away from credit card companies because they will fuck you in every way possible. If you want to borrow their money then that is what you have to deal with. They are loan sharks. Only difference is they don't come after you and break your legs, they break your wallet.

The new legislation will ease some pain and I do agree with it, but they will find other ways to make money. They hire people that are assigned to do just that. They will charge a $20 yearly fee, which may seem like nothing but multiply that by a couple million people. They are not stupid they know most of America needs them and they will find ways to make money off us.

[.laurenx.]

I can understand all the anger with the banks charging 30% interest, late fees, processing fees etc. but also remember you are not forced to use credit cards. Read the fine print one day they can basically charge and do whatever they want. You "agreed" to it.

Bottom line: stay away from credit card companies because they will fuck you in every way possible. If you want to borrow their money then that is what you have to deal with. They are loan sharks. Only difference is they don't come after you and break your legs, they break your wallet.

The new legislation will ease some pain and I do agree with it, but they will find other ways to make money. They hire people that are assigned to do just that. They will charge a $20 yearly fee, which may seem like nothing but multiply that by a couple million people. They are not stupid they know most of America needs them and they will find ways to make money off us.

thats all im looking for, understanding lol

unlike jamez whos going to sit here and lie through his teeth and act like the fee is justifiable just for the sake of arguing. .:disappoin

[jameznyhc]

I can understand all the anger with the banks charging 30% interest, late fees, processing fees etc. but also remember you are not forced to use credit cards. Read the fine print one day they can basically charge and do whatever they want. You "agreed" to it.

Bottom line if you can just stay away from credit card companies they will fuck you in every way possible. If you want to borrow their money then that is what you have to deal with. They are loan sharks. Only difference is they don't come after you and break your legs, they break your wallet.

The new legislation will ease some pain and I do agree with it, but they will find other ways to make money. They hire people that are assigned to do just that. They will charge a $20 yearly fee, which may seem like nothing but multiply that by a couple million people. They are not stupid they know most of America needs them and they will find ways to make money off us.

thats what im saying ..people are like yeahhh no more online fees... ok so now maybe since its across the board and all cell phone companies must comply they will do what any over REGULATED industry does .. they will ALL raise there fees by 10 dollars a month ..and why not? they can makle more charging EVERYONE $10 more per month vs those who payed 7.95 by paying online ...lol people just donyt get it ..the more you reguklate the more you drive up costs ..look at healthcare .. perefct example

[James Maxx]

lolol but the bank has nothing to do with it.:wallbang

one more time and than i give up lol


my credit card charged me 7.95 for making a payment by using my bank's (citibank) online bill pay service. now if i take my checkbook out and write them a check, it's free. if i use citibanks service WHICH also mails them a paper
check, it's 7.95

the only difference is the appearence of checks like i already posted above.

Also you are paying not just for the convenience but for the speed of the payment. Try mailing a check when your bill is due in 2 days. You wanna get charged $40 late fee? Well then you use the e-pay and just get charged $7.95.

I hope you don't have a Citibank card, because you can just transfer money from checking to pay down the card.

[jameznyhc]

thats all im looking for, understanding lol

unlike jamez whos going to sit here and lie through his teeth and act like the fee is justifiable just for the sake of arguing. .:disappoin

id rather have an optional 795 fee then a a rise in cost that i cant avoid .. lol they will make it up in ways people cant get around now ...why? the govt fuckin shit up again

[James Maxx]

thats all im looking for, understanding lol

unlike jamez whos going to sit here and lie through his teeth and act like the fee is justifiable just for the sake of arguing. .:disappoin

It may not be justifiable to you but remember it was a term you agreed to when you received the card. If you don't want to pay the fee just mail a check a week earlier.

[jameznyhc]

thats all im looking for, understanding lol

unlike jamez whos going to sit here and lie through his teeth and act like the fee is justifiable just for the sake of arguing. .:disappoin

bottomline your responsible and send your check out early no penalty ...you wait and pay online then your charged a fee .. a 3 yr old can understand that .. by forcing the companies to get rid of this fee will only force the cell phone providers to make it up in other ways we cant avoid .. so much for govt interference huh?

[jameznyhc]

It may not be justifiable to you but remember it was a term you agreed to when you received the card. If you don't want to pay the fee just mail a check a week earlier.

exactly

[.laurenx.]

Also you are paying not just for the convenience but for the speed of the payment. Try mailing a check when your bill is due in 2 days. You wanna get charged $40 late fee? Well then you use the e-pay and just get charged $7.95.

I hope you don't have a Citibank card, because you can just transfer money from checking to pay down the card.

lol i sitll think theres some confusion here.

my credit card ill call it XYZ ..has no relation to citi

XYZ doesnt have an eletronic transfer option setup with citi, therefore when i pay my bill online with citi, citi notifies me that they will be mailing a paper check to XYZ (since electronic billing is unavial) and that i need to allow 10 days for payment etc.

its EXACTLY the same thing is me mailing a paper check. which is why it came as such a suprise to see a $7.95 fee. please tell me we're on the same page :plead

[jameznyhc]

lol i sitll think theres some confusion here.

my credit card ill call it XYZ ..has no relation to citi

XYZ doesnt have an eletronic transfer option setup with citi, therefore when i pay my bill online with citi, citi notifies me that they will be mailing a paper check to XYZ (since electronic billing is unavial) and that i need to allow 10 days for payment etc.

its EXACTLY the same thing is me mailing a paper check. which is why it came as such a suprise to see a $7.95 fee. please tell me we're on the same page :plead

bottomline youll endi up paying more with this regulation...everyone looses

[ShaE]

.. by forcing the companies to get rid of this fee will only force the cell phone providers to make it up in other ways we cant avoid .. so much for govt interference huh?
:hmmm b/c they can't possibly cope w/ the loss of such a fee?

[jameznyhc]

:hmmm b/c they can't possibly cope w/ the loss of such a fee?

not just because they will loosing this fee ..but it gives them all an oppurtunity to raise the costs to not only cover this fee but maybe even pocket a little more ..why wouldnt they?

[jameznyhc]

thats why regualted industries are so expensive

[metfan85]

I'd be willing to bet that most people complaining about convenience fees are also the same half-wits who buy lotto tickets. It's the same mentality, you'd rather waste money on a million to one shot, than pay for a service that actually conveniences your life.

[TheHipHopBillGates]

Banks have declared war -- on you

Changes are coming fast to the credit card world, and you can expect your bank to raise rates, slash credit limits, add fees and cut rewards. Consumers, brace yourselves.

Fasten your seat belts, credit card holders. It's going to be a bumpy few months.

When President Barack Obama signed credit card reforms into law recently, bankers shook their fists and warned us we'd be sorry. Though some of their threats are so much hot air, the new legislation will force some dramatic and often unwelcome changes.

Who's most at risk? Anyone who carries credit card debt, and that includes those of you with great FICO credit scores.

Who's least at risk? Big spenders with good credit scores who don't carry balances.

"Brace yourselves. For the next nine months, until this law takes effect, issuers will do more of the same: raising interest rates, pushing through new and higher fees, and continuing to scale back credit limits," said Greg McBride, a senior financial analyst at Bankrate.com. "Everybody, including those with very good credit, will have to get accustomed to lower credit limits, higher rates and higher fees as a result."

Read on for how the landscape will change and how you can best cope.

First, a little history: After years of offering cards to virtually everyone, including toddlers and dogs, issuers started overhauling their practices early last year as the recession took hold. (Read my column "The credit card party is officially over" from February 2008 to see how it all began.) Rate increases, account closures and credit limit cuts became more widespread as delinquencies started to spike and as issuers lost access to the securitization market that had provided them with so much cash.

Before the credit crisis, you see, issuers could bundle up your credit card debt and sell it in slices to investors, raising money the card companies could use to extend even more credit.

Once investors became allergic to risk, though, that easy source of funds dried up, and issuers reeled back some of the credit lines they'd proffered in better days. (One prominent banking analyst estimates issuers will cut overall limits by more than half before the end of 2010.)

Issuers are also making cards harder to get. The deluge of credit card offers that once swamped your mailbox has slowed to a trickle, and the majority of card companies tell the Federal Reserve they've tightened lending criteria by, for example, requiring higher credit scores.

Suddenly, the consumer matters

Meanwhile, the Fed woke up after a long slumber and noticed that some of the issuers' practices weren't exactly fair to their customers. Stuff like:


Hiding fees.

Raising rates on existing balances for any reason or no reason.

Jacking up rates because you missed a payment on an unrelated bill.

Applying payments first to balances with the lowest rate so the higher-rate charges would accrue interest longer.

Charging interest even in months when a customer didn't carry a balance, a practice known as double-cycle billing.


So the Fed and other banking regulators banned these practices but postponed implementation of the changes until July 2010. That, of course, gave issuers a running start so they could jack up rates, cut limits and impose fees even more furiously.

Which issuers did. That, in turn, fed a groundswell of public indignation that led lawmakers to impose even stricter reforms by lopsided votes in the House and Senate. For example:


Interest-rate increases will be permitted only under a few conditions, including when a promotional rate ends or when a cardholder is 60 days late with a payment. Issuers won't be able to raise rates for a year after granting a customer a card.

Instead of allocating payments proportionately among balances with different interest rates, issuers will have to apply payments to the highest-rate balance first.

Issuers will have to give 45 days' notice of any significant changes in your card agreement, up from today's 15-day notice, which will give you more time to shop for an alternative.

"Gotcha" fees for late payments will be harder to impose. Cardholders must be given at least 21 days to pay a bill after the statement closing date. Any payment received by 5 p.m. on the due date will be considered on time. Issuers will no longer be able to assess a late fee if a payment is received on a due date that falls on a day when the issuer is closed, such as a weekend or a holiday.

Cardholders must agree before issuers can approve over-limit transactions and impose fees.

Applicants under 21 must prove they have independent income or get a co-signer before they can open a credit card account.

Issuers can no longer lard subprime credit card offers with upfront fees. Such fees would be limited to 25% of the credit limit.


Like the Fed, though, lawmakers gave card issuers some time before the changes go into effect. So credit card companies have until next February to get their licks in.

And they will.

"Those (cardholders) who are revolving balances, even those with good credit, are going to suffer," predicted CardRatings.com's Curtis Arnold. "There's probably never been a worse time to have credit card debt."

Your credit card future

Here's what's going to happen:


Interest rates are going up. Many customers have seen their once-low rates double or even triple in recent months, and that trend won't abate. Issuers are desperate to boost their revenues as charge-offs "climb into the double-digit range," Arnold said. "This is unprecedented territory."

The average rate on credit cards in the past few months has inched up from just under 12% to more than 13.5%, Arnold said, "and I think by the end of the year it will be 1 to 2 percentage points higher." This trend may accelerate as the law's implementation date approaches. "Issuers will raise introductory rates because their hands will be tied," Bill Hardekopf of LowCards.com said. "They won't be able to raise any rates for a year."

Great balance transfer deals will disappear. Again, this is already happening. Two years ago, someone with good credit could find plenty of low-rate balance transfer offers -- often as low as zero -- with low or no fees. Today, the so-called teaser rates tend to be higher, last only a few months and come with 3% to 4% balance transfer fees that aren't capped, Arnold said. He advised consumers with a balance to look beyond initial teaser rates to find cards with low continuing rates.

"Six to 12 months from now (when your teaser rates expire), there may no longer be any balance transfer offers," Arnold warned, "at least not with any decent terms."

More fees are coming. Issuers increasingly relied on late and over-limit fees to boost their profits. Once their ability to impose these fees is restricted, issuers will impose others, including annual fees. "Right now, 80% of cards do not have an annual fee," Hardekopf said. "I think that 80% will come way down."

Subprime cards will all but vanish. Issuers have been fleeing this market anyway as delinquencies and defaults rise. To build or rebuild credit, people will need to turn to secured cards, which require a deposit, Arnold said.

Instant-approval retail cards may be endangered. The new law requires issuers to consider applicants' ability to repay, something that's tough to do on the fly. So fewer retailers may offer those "10% off today if you get a card" deals.

Rewards and terms may worsen for some. Bankers threatened to water down rewards programs and eliminate grace periods entirely, meaning that even those who pay their balances in full would owe interest starting from the day a purchase was made.


Eventually, competition will help

Pretty awful, right? Except such drastic measures are unlikely to stick when it comes to issuers' most creditworthy customers.

That's because the credit card industry is still highly competitive, and the most-sought-after cardholders are those with high credit scores, generally FICOs of 740 and above.

If you're not anchored by a balance and you have great credit, you can quickly change cards to one that suits you better, which will continue to be the case even after Congress' restrictions are imposed.

"The competitive nature of the industry will be a check and balance," predicted Hardekopf, who is exactly the kind of high-volume charger with good credit that issuers are seeking. If a card issuer eliminated his grace period or rewards program, he'd switch, and if all issuers imposed such changes, "I'd start writing checks again or use a debit card that offered (rewards) points."

Arnold believes big-spending customers will continue to be prized, even if they don't carry balances, because they generate "interchange" fees, the fees paid by merchants to card issuers that average 1% to 2% of each transaction.

"Those interchange fees, 12 to 24 months from now, are going to be increasingly important for issuers," Arnold said.

So here's your game plan for the next nine months:


Watch for changes. Check your accounts at least monthly to see whether your account limits or rates have been changed. Read everything your issuers send you via "snail mail" or e-mail, because they may not draw attention to unfavorable alterations in your agreement.

Fight rate increases and credit limit cuts. You'll have the most leverage if you have good credit, since issuers know you can take your business elsewhere. One of my readers had her rates raised to 27% and 29.9% but persuaded the issuers to lower them to 10% with a phone call. Not everyone will be so successful in this environment, Arnold said, but you should at least try.

Don't close accounts. It's tempting to say, "Close my account," after one of these interest-rate attacks, especially if it's a little-used card, but don't. Closing a card after a big rate increase could make rates on other cards soar, too, because your available credit has shrunk but the balance you carry on the other cards hasn't. That can ding your credit scores.

Consider adding a new issuer to your credit card portfolio. Now is not a good time to have all your credit eggs in one basket. You'll have more flexibility to escape onerous changes if you can easily transfer your business to another issuer's cards.

If you carry a balance, you need to get rid of it. You can no longer count on a never-ending stream of balance transfer offers to keep your rate down. Read "6 steps to dumping toxic debt" for strategies.

If you're already struggling, explore your alternatives. Card issuers are more willing than in the past to work out payment plans, offer breaks if you enter credit counseling through a legitimate agency or to accept lump settlements for delinquent accounts. (Be advised: Such settlements will further trash your credit scores.) You also may want to discuss your situation with a bankruptcy attorney. Visit MSN Money's Bankruptcy Guide for more information.


http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/banks-have-declared-war-on-you.aspx

[James Maxx]

lol i sitll think theres some confusion here.

my credit card ill call it XYZ ..has no relation to citi

XYZ doesnt have an eletronic transfer option setup with citi, therefore when i pay my bill online with citi, citi notifies me that they will be mailing a paper check to XYZ (since electronic billing is unavial) and that i need to allow 10 days for payment etc.

its EXACTLY the same thing is me mailing a paper check. which is why it came as such a suprise to see a $7.95 fee. please tell me we're on the same page :plead

It seems that your credit card is probably getting charged from Citi to arrange this payment, so they tack it on to your bill. That is ghetto that they don't even offer an electronic payment option.

[woo]

it's true you do indeed agree to a contract but the credit cards fucked up enough. either things get expensive or we continue to collapse.
either way we r paying the price.