Comments on: Summary of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009

By: Keith

Keith — Fri, 15 Jan 2010 00:07:33 +0000

Actually Scott makes a good point. Banks not being able to raise rates on riskier customers, will cause banks to charge all of their customers more to maintain profitabilty.
60 days late is way too late to charge a higher rate because the bank is calling the bad account from day 1 trying to collect their money. It costs the bank money to call delinquent customers from 1 day all the way up to 60 days. Yet “all paying” customers will have to pay for those collection calls because most 60 day accounts eventually charge off. That bad debt and the collection expense will be paid by all the other customers who pay as agreed.

While I do think banks have taken too much, Kevin, this new law makes the “good paying” group pay more for the delinquent group. That’s not capitalism, that is more like socialism. BTW, Citi is covering their risk. BofA can give you a lower rate because you are a new customer. BofA will likely charge you fees to make up for the lower rate they gave you. All of the major banks will do it. But you did the right thing, by saying “bye bye bank” but watch those other fees.

This legislation causes banks to charge everyone more instead of charging higher risk customers more. They may start charging fees on debit cards or in other areas.

By: kevin h.

kevin h. — Tue, 29 Dec 2009 19:40:46 +0000

scott you’re a fool. that’s capitalism ripping you off, not socialism. eight months before the law goes into effect, Discover raised your rate only to make more money and then lied to you so you’d be mad at everyone except them.

tammy, yes citi is dumb. i have paid off my balance in full always but i missed a payment by 3 days by accident. my rate went from 12% to 25%, but my credit score averages around 770 so bank of america was happy to give me a credit card at 9%. so long citi.

doesn’t everyone realize credit cards make money by charging the merchants for every purchase? if you don’t use your credit card for purchases the bank makes no money off you. but if you don’t use your credit card and get rewards or cash back, you’re paying for those people who do because the merchants pass their costs on to everyone equally.

By: Tammy

Tammy — Tue, 17 Nov 2009 00:34:30 +0000

In theory this is great, but those evil credit card companies are punishing current card holders by significantly increasing rates for no reason just to have inflated rates when this goes into effect. Ban Citibank. I was so happy with them until for no reason i get notice that my 7% apr is jumping to 29% apr..I have barely any balance and have always paid early..they still offer new cards at a lower rate, btu a loyal customer since 1985 gets teh shaft. Close those loopholes!

By: Scott

Scott — Sat, 13 Jun 2009 19:28:31 +0000

I just received my Discover today and the rate went from 8.9% t 15.74. I have a balance of about $5800.00. When I called to ask them if they could do anything about it, the only thing they could do was give me a 6 mo. 0% on new purchases. Yeah, like thats going to happen. They told me the reason for this was as of June 1 Congress passed this new Bill that prohibits them from charging higher rates to the deadbeats so they have to “spread the wealth”. Socialism at its best! Thank you Obama from me ripping me off. And a big thank you from all of the dead beats who over charge and dont pay their bills on time

By: Grant

Grant — Wed, 20 May 2009 22:23:58 +0000

I’ve heard a rumor that the “grace period” will no longer exist. That is, even if you pay off your card every month, you’ll be charged interest on a daily basis for every dollar on the card. Guess we’ll just have to wait and see.

I, for one, would most likely start using my credit card significantly less if subject to interest charges, and just use my (free) debit card, except for online purchases (and others where I want the consumer protection of a credit card.)

The credit card companies are not going to take a hit in their profits. They will find other, new ways to make their profits, such as less valuable rewards programs, higher interest rates for everyone, and more annual fees.

By: Lakita

Lakita — Wed, 20 May 2009 14:11:49 +0000

This is great! Though I’m worried that creditors will start increasing rates before this goes into effect! Glad mine are almost all paid off!!!

Matt Jabs (DebtFreeAdventure) just yesterday wrote about how his rate was jacked up — the reason….poor economic conditions!!

Wonders if the act will be grandfathered to undo abusive practices?

Thanks for the info!
Kita