How Will Credit Card Reform Affect You?

There are a number of ways the new laws restrict credit card companies. Credit card companies have had constraints placed on them in certain ways and have had to figure out new ways to rip people off. Yes, I said it. I guess it’s plain to see that this is how credit card companies work. They’re sneaky, they like fine print, and they will do things to harm you when you least expect it. Here are some bullet points about the new rules:

  • Credit card companies can no longer raise rates on existing balances
  • Companies can no longer charge a fee for going above a credit limit unless you sign up for a service
  • Bills must be mailed at least 21 days before the payment is due
  • Companies must provide 45 days notice prior to changing fee amounts or other substantial account characteristics or term
  • Credit card companies can still cancel you or lower your limit without giving you notice

There are also a number of other changes and other things that have not changed. I recommend reading the below links to read all about the changes. One thing is for sure – when you deal with credit card companies, you are playing with fire or you are playing with snakes. In either case, the fire can become out of control or you will be bitten.

USA Today story on Credit Card Changes

US Credit Card Charge Offs Up, Deliquencies Down

New Credit Card Rules Allow for Maneuvering

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