New rules for credit card issuers

[Itsmeagain]

I just heard on CNN that Obama wants to sign the new credit card law on or about Memorial day.  According to my mother figure (Robin Meade), this will put new restraints on the card issuers even greater than the law going into effect in 2010.

Anyone have details on this?

[Anonymous]

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@Itsmeagain wrote:

I just heard on CNN that Obama wants to sign the new credit card law on or about Memorial day.  According to my mother figure (Robin Meade), this will put new restraints on the card issuers even greater than the law going into effect in 2010.

Anyone have details on this?

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Essentially it is designed to keep card issuers from taking adverse actions without cause.  One of the key issues is rate jacks to existing balances.  The premise is that if the issuer is raising the rate, it could only apply to new purchases or transactions, not to existing balances.

This would not stop "default" rate increases, nor prevent an intro rate from expiring.  But it would prevent an issuer from moving a 9.9% to 27.99% if there were no term violations or cause, such as a late, over limit or other "default" trigger.

[Cleanmachine]

The House  has passed their Bill.

The Senate is debating their Bill this week.

Both Bills will go to conferees to clean up disputes between the two Bills than back to the Full House & Senate for final passage, then to the President to sign in to law.

We will have to wait until the final Bill is published to digest exactly what the President will sign and how it will help or hurt the consumer.

Message Edited by Cleanmachine on 05-12-2009 10:51 AM

[Itsmeagain]

Thanks Clean . . . . I'm sure we're all waiting with baited breath to see how they can screw this one up . . .

[YoungEntrepeneur]

*crosses fingers*

[Brusilov]

Here's an interesting article I found recently that lists a few cards that are already (or have been) compliant with the laws going into effect:

http://www.smartmoney.com/Spending/Deals/4-Consumer-Friendly-Credit-Cards/

[Itsmeagain]

Good find Von . . . very interesting . . . Thanks . . .