Lawmakers herald reformed credit card rules for U.S. card holders

February 22, 2010 by · Leave a Comment
Filed under: Credit News 

Too bad the card companies had many months to hike rates and implement new fees before this bill went live.  Good to see this reform happening, long over due but as the industry said, give us the rules and we will follow them and then innovate based on those rules.  This is not the last word on this issue and that is certain.

Reuters – The implementation of rules from the credit card act, signed into law in May, will help cardholders understand how much their credit cards cost to use, U.S. Treasury Secretary Timothy Geithner and President Barack Obama said in statements.

The new rules restrict credit card issuers such as Bank of America Corp and JPMorgan Chase & Co from hiking rates on borrowers that are late with their payments. The rules also prevent card companies from charging over-limit fees, unless customers have previously given the companies permission to process transactions that would take their account over its limit.

“For too long, credit card companies have had free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable costs,” President Obama said in a statement on the implementation of the credit card bill.

“But today, we are shifting the balance of power back to the consumer and we are holding the credit card companies accountable.”

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