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Hi everybody,
I have an exciting news to share with all regarding the credit card rules. The credit card rules have changed officially from 22nd February, 2010. The changed rules are:
• It prohibits hike on the interest rate on existing balances.
• It prohibits hike of interest rate for 12 months. However, it can be done only if a customer goes delinquent for more than 60 days.
• It prohibits over limit fees, unless the customer has opted for it.
• If the promotional interest rate had been explained along with the offer, then only can it be increased.
• The statement on the account must arrive 21 days before the due date.
• The monthly bills must show the time that will be taken to pay off the balance through minimum payments.
I heard this information on the news last night, I think it is great that there are finally some rules about credit card debt.
I really like the one about having to be 21, I remember when I went back to college, there were credit card companies there all the time in the HUB with a table set up and small prizes for signing up. They would encourage college age kids to open accounts and promote their business. So I think this part is good, kids come out with enough debt from college, this one is really not needed because most of them just used it to shop for unecessary items.
I have been following these changes for a couple months now. The only thing I believe they did wrong was waiting to enact them. This campaign against credit card companies began sometime last summer. The Obama administration actually gave them months and months before beginning these new guidelines. In the mean time everyone got letters in the mail from the credit card companies upping their interest rate. We had almost all of ours upped. Most did not have balances and were there simply for the credit history but the two we actually used raised by a few points.
you had the option to opt out but if so it closed your account., therefore you would lose the account history.
The upside is though is our future generations will not suffer as much at the hands of creditors.
reply
Hi all,
I think the best part of the new rules is that, the creditors will have to provide information every month along with the bills, the time to be taken to pay off the dues by making minimum payments.
However, still the customers need to be on their guard. Because, the new rules do not mention the limit till which the interest rates can go up :( .
credit card new rules
Hi,
The new rules on credit cards are well and good. However, the worst part is that the creditors hiked their fees much before the rules could have been implemented. The creditors started increasing interest rates, and added other fees to the existing balances. As the new rules restricts creditors from increasing interest rates on existing balances, charging overlimit fees, etc, the creditors increased the rates much before the card rules could come into force.
Thanks,
Mercury
Mercury, Yes I mentioned this before too. Most did raise their interest within a month or so of the new rules taking place. My husband has excellent credit and he seen his rates go up af ew percentage points.
The cards have little balance on them. We wanted to close them after being angry they did this but then we would lose our credit history. We just decided to leave a very small balance.
I do like the new gift card rules. Now they can not expire in a year. You actually have five years to use them. I use to work in a store and have older people bring in their gift card only to find it expired after as year. The company gained the money.
See fireyone, I don't have that problem, I use them up as soon as possible, LOL, usually have a need for them.
As far as the credit card rates, I only have a fashion bug card, I have a small balance on it, just paid a big chunk go two of my credit accounts to get them down, way down.
I was not aware, but by paying them down I will be able to refi my mortgage, these accounts will raise my score by paying them down, the guy at the bank said that they are actually 30% of my score, I had no clue.