@athensguy wrote:
@larinoriani wrote:
So basically the CARD act was just enough to make issuers play around with their rules and not to help consumers...? I guess by now they have found a way to go around each of the CARD new "rules"...
The Credit CARD act prevents issuers from arbitrarily raising interest rates on existing balances unless you are late with your payments. IMO, that is the most important change. It also directs issuers to apply payments over the minimum to the highest interest rate debt unless certain conditions apply.
And it also keeps issuers from making even more money off of those who carry balances by forcing them (us) to pay our balances down more quickly. Increasing the minimum payment is actually pro-consumer if you think about it. Although of course, it's better to pay way more than the minimums.
Another thing that they had to do is add the at-the-rate-that-you're-going box to your statements. If you look at one of your statements that has a balance, you'll see a section that says that if you only make minimum payments, it will take you X number of months to pay it off, whereas if you pay a higher amount, you'll pay it off in Y months (Y being less than X, obviously.)
So sure, the CARD Act failed to address some things, and lenders are still trying to weasel their way around various provisions, and oh yes, they also like to blame the Act for things that they don't want to do, like give CLI's, but it's not a complete dud. Just the usual mixed bag.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Starting Score: EQ 737--TU 742