Thursday, May 21, 2009

Under Obama the responsible are punished, again...

New credit card rules punish those who pay their credit cards off each month;
    Every American with a credit card will see sweeping changes in the market, with limits on sudden hikes in interest rates that drive consumers deeper into debt. Even cardholders who pay off their balance each month may face new annual fees or lose out on lucrative rewards programs.

    Congress wrapped up the legislation Wednesday and sent it to President Barack Obama, who plans to sign it on Friday. The bill will revolutionize the market by restricting when and how a card company can raise an individuals interest rate, who can receive a card and how much time people are given to pay their bill.

    In general, the new rules  which go into effect in nine months  will protect debt-ridden consumers from many of the surprise charges common in the industry, such as over-the-limit fees and costs for paying a bill by phone.

    This cements a victory for every American consumer who has ever suffered at the hands of the credit card industry, said Sen. Christopher Dodd, D-Conn., chairman of the Banking Committee.

    But there will be losers too.

    Banks, which oppose the legislation, will need to make up the cost somewhere, and cardholders who pay off their balance in full each month could see new annual fees and lucrative rewards programs canceled.

Change we can believe in...

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