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.

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Delinquencies on all U.S. credit card debt soared to a record 6.60%

July 7, 2009 by · Leave a Comment
Filed under: Economic News 

The market is down at the time of this writing.  With rising unemployment, foreclosures are sure to continue and this does not bode well for consumer debt either.   In this article they mention a rising of late payments on home equity lines of credit as well.  I am sorry to say, but until we can stop losing so many jobs and put a bottom in the job market, these trends will continue.  You have to have income to support debt service and asset prices at what ever level they were before the downturn started.  That is how a market-based economy works and that is not going to change here.  My advice is to keep yourself protected and continue to reduce your expenses and debt.

News (Reuters):

Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt and home equity loans to all-time highs in the first quarter as a record number of cash-strapped consumers fell behind on their bills.

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Pelosi sees U.S. credit card bill of rights becoming law

April 30, 2009 by · Leave a Comment
Filed under: Legal News 

This think this industry has been a little unchecked lately and this will help balance things out and over time hopefully make it so borrowers get debt they can handle and the defaults rates goes down.  The devil is in the details so I will need to hold final judgement until I can read the final bill.

News (Reuters):

 The speaker of the U.S. House of Representatives, Nancy Pelosi, predicted on Thursday that her chamber would pass a pro-consumer credit card bill, and the measure backed by President Barack Obama would become law.

“Very soon this will be the law of the land and the consumers will benefit,” Pelosi told her weekly news conference as the House began debate on the measure.

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Credit Card industry may cut $2 trillion in consumer credit lines

December 7, 2008 by · Leave a Comment
Filed under: Industry News 

With our economic situation continuing its path of deterioration, it would would seem likely that many borrowers that were credit worthy are not in a much more dire situation and that in turns increases the liability risk default.  This just enhances why we need to promote savings and debt reduction as a national policy in this country.  If you have savings then the credit markets do not impact your ability to purchase goods.  This is a dramatic shift from our current consumer credit driven media culture.  With this reduction in purchasing power, we will see more losses in the markets as they price this in.

News:

The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.

The credit card is the second key source of consumer liquidity, the first being jobs, the Oppenheimer & Co analyst noted.

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