Interesting Information on Credit Card Companies

Anonymous — Tue, 04 Dec 2007 13:51:17 GMT

I thought this was a good article on credit card companies abusive practices.

WASHINGTON(AP) Congress is renewing its scrutiny of the credit card industry, as some lawmakers denounce the practice of raising customers' interest rates when their credit scores decline, even if they make their card payments on time. Industry critics say it's another example of abusive, confusing credit card practices that can push consumers deeper into debt.

Sen. Carl Levin, D-Mich., chairman of a Senate Homeland Security and Governmental Affairs subcommittee, is holding out the club of possible legislation to spur voluntary changes by the industry.

"Working people are being squeezed," Levin told reporters Monday. In a call for "good, strong legislation" to be enacted next year, Levin said that "these abuses need to be remedied. ... We have some real momentum for reform."

With Americans weighed down by some $900 billion in credit card debt _ an average $2,200 per household _ practices of the very profitable industry have been ripe for scrutiny by the Democrat-controlled Congress. They have also grabbed the attention of the Federal Reserve, which plans to require credit-card issuers to give customers at least 45 days' notice before raising interest rates and to provide clearer information on fees.

At a hearing Tuesday, Levin's subcommittee, which has been investigating the industry, planned to look at how credit-card issuers raise consumers' rates, to as high as 30 percent, when their so-called FICO credit scores decline even if they've paid credit card bills regularly and promptly. In many cases, consumers have little notice of the increased rate, which are automatically triggered by declines in FICO scores for reasons left unexplained, the subcommittee found.

In some cases, just opening another account, such as a department store credit card, could trigger the downgrade in credit score.

Hoping for changing.......

Re: Interesting Information on Credit Card Companies

Anonymous — Tue, 04 Dec 2007 13:59:16 GMT

Carl Levin was a very good friend of my parents-

I think he IS making a difference and several companies are getting their ducks in a row because of his proposals.

topic Re: Interesting Information on Credit Card Companies in General Credit Topics

Interesting Information on Credit Card Companies

Re: Interesting Information on Credit Card Companies