Credit Cards Made a Little Less Evil with New Industry Rules
Posted by Cap in Credit Related |
In case you missed the news, federal regulators voted today to adopt sweeping new rules for the credit card companies, protecting us from some of the shadiest practices the credit card industry has conjured up through the decades.
These new rules will take effect by July 2010, and they are by far the most major smack down in terms of regulation for the industry in decades. Here are some of the new rules in our favor:
- Double-cycle billing got axed, cajun style.
- Payment allocation will now be to highest interest balance first or proportionately to all balances (so it won’t you longer to pay off balances).
- Card holders will now have reasonable time to make payment (21 days).
- Notification for change in terms has been changed from a minimum of 15 days notice to 45 days notice.
There’s a few more new rules on the table, and you can read about them via the resources below. So far, the Office of Thrift Supervision has voted on the new rules, and its expected that the Federal Reserve and National Credit Union Administration will vote on the new rules later in the day.
Although I’ve mentioned often that I love using credit cards and never really felt that card companies forced me into my prior debt, I have no illusion that many credit card companies policies and practices can make financial life of a cardholder living hell.
Hopefully these new rules will tilt the favor for future cardholders. Despite the upcoming added protections, credit cards are still a financial tool that requires due diligence and care by consumers. You should always read all the terms and condition associated with a card carefully.
4 Comments to “Credit Cards Made a Little Less Evil with New Industry Rules”
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December 20th, 2008 at 1:44 am
Nice picture!
These are great changes, and a positive step forward for consumers.
December 22nd, 2008 at 9:03 am
I too love the picture….
I think your words, “a little less evil” are accurate and unfortunately we have to will wait to July 2010 to see these benefits. But what concerns me, is the corporations have another year and half to think up other ways to get more money.
January 2nd, 2009 at 11:44 pm
Well…they’re still evil (except for that cute li’l illustration you made) but those are pretty great changes, esp. #1.
February 26th, 2009 at 5:03 pm
Basically think of credit card companies as someone trying to trick you out of your money. Normally I don’t use services where people are trying to trick me out of my money. But they are useful and I think if you take care you can prevent them from ripping you off.