What do you think about the credit card rules that changed this week - DFWstangs Forums
 
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post #1 of 21 (permalink) Old 08-21-2009, 11:52 AM Thread Starter
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What do you think about the credit card rules that changed this week

I think itís a bunch of bull shit that only helps the credit card companies even more! It sure isnít going to help protect the consumers with higher fee's!

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post #2 of 21 (permalink) Old 08-21-2009, 12:09 PM
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I missed it, do you have a quick summary until I can read more deeply?

My '03 Sold.
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post #3 of 21 (permalink) Old 08-21-2009, 12:22 PM Thread Starter
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I missed it, do you have a quick summary until I can read more deeply?
http://blogs.consumerreports.org/mon...nsumeristLinks
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post #4 of 21 (permalink) Old 08-21-2009, 12:24 PM
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There will be more fees, but at least the fees will be more VISIBLE. Cancel your credit cards if you don't like it.
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post #5 of 21 (permalink) Old 08-21-2009, 12:25 PM Thread Starter
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1. No more gotcha late fees because the bill was received too late to get the payment in on time. A payment cannot be treated as late unless the bill is sent at least 21 days before the payment due date.

2. More notice when the terms of the card get worse. Card companies must provide 45 days advance written notice to the consumer of significant changes to the credit card account.

The Federal Reserve Board was given the task of detailing exactly what changes constitute ďsignificant changesĒ and require this new notice.

The card company must notify you 45 days in advance if they change the:

* Annual Percentage Rate. (They must notify you if they increase or change it from fixed to variable, but they donít have to notify you if they decrease the APR.)
* Fee increases
* Minimum payment requirement (see note 1 below.)
* A reduction in or loss of the grace period.
* The method for computing the balance.
* Changes between a fixed and a variable interest rate.

There are a few exceptions. They do not have to notify you if:

* They reduce your APR
* The APR expires pursuant to a previously specified expiration date
* Your account is suspended or terminated
* They lower your credit limit (45 day notice IS required if they want to impose an overlimit fee or penalty rate for exceeding the lower limit.)
* A variable rate changes

3. The right to avoid the adverse change by rejecting the new term.


NOTE 1: there is no right to reject a minimum payment increase.

NOTE 2: If you reject, the bank can cancel the card and make you pay if off under your old terms, but with a higher minimum payment. Your new payment could be double your old minimum payment, or higher if needed to pay off the card in five years.

Although the end may be near, consumers have been subject to unscrupulous credit card practices for decades, and weíve still got a few months until we are fully protected. We shouldnít have had to wait so long. Tell Congress that we need a Consumer Financial Protection Agency to stop dangerous financial practices before they take over the marketplace!
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post #6 of 21 (permalink) Old 08-21-2009, 01:27 PM
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I'm glad I'm not dependant on the plastic... or indebted to it, for that matter.
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post #7 of 21 (permalink) Old 08-21-2009, 01:32 PM
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Originally Posted by Denny View Post
I'm glad I'm not dependant on the plastic... or indebted to it, for that matter.
No shit.

They also can't market to people under age 18.

All of this stuff is badly needed IMO, fucking banks have been out of control for a while. There are more rules coming in six months and another round a year from now.
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post #8 of 21 (permalink) Old 08-21-2009, 01:50 PM
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Where did my money tree go?!?!
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post #9 of 21 (permalink) Old 08-21-2009, 01:56 PM
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[QUOTE=scootro;5851053]1. No more gotcha late fees because the bill was received too late to get the payment in on time. A payment cannot be treated as late unless the bill is sent at least 21 days before the payment due date.

Shouldn't that be 21 days AFTER?
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post #10 of 21 (permalink) Old 08-21-2009, 02:02 PM
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Of all of the provisions the only thing that is making me wonder is the clause that if you refuse to agree to a higher rate and they close your card. They give you five years to pay it off at a higher minimum, but I wonder if that they will report that as a negative item your credit somehow.
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post #11 of 21 (permalink) Old 08-21-2009, 02:08 PM
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Originally Posted by AdamLX View Post
Of all of the provisions the only thing that is making me wonder is the clause that if you refuse to agree to a higher rate and they close your card. They give you five years to pay it off at a higher minimum, but I wonder if that they will report that as a negative item your credit somehow.
They dont report it as a negative item on your credit, but it lowers your credit score until the balance is paid off since your total debt becomes a higher percentage of your available credit.
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post #12 of 21 (permalink) Old 08-21-2009, 03:31 PM
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They dont report it as a negative item on your credit, but it lowers your credit score until the balance is paid off since your total debt becomes a higher percentage of your available credit.

That's the point I was trying to convey, credit will be affected in a negative way if this happens. Fucked from both ends.
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post #13 of 21 (permalink) Old 08-24-2009, 11:07 PM
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Shouldn't that be 21 days AFTER?
No, they have to send you a bill at least 21 days before payment is due, meaning they have to give you at least 21 days to pay the bill.

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post #14 of 21 (permalink) Old 08-25-2009, 08:18 AM
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...

Quote:
Originally Posted by slow06 View Post
No, they have to send you a bill at least 21 days before payment is due, meaning they have to give you at least 21 days to pay the bill.
Oh, I see. I was thinking in terms of the customer sending the bill in late and having a grace period. Not the customer recieving the bill.
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post #15 of 21 (permalink) Old 08-25-2009, 09:39 AM
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Fuck the credit card companies. Chase and Discover have ruined my good friends credit and now his small business is going down in flames. He had great credit and had a Chase card with $16,000 credit limit and was paying on a $6500 balance with them. Same with Discover card. These companies both sent him a letter out of the blue stating they were lowering his credit limit to $6800. So what's the problem? Now his credit report looks like his credit cards with these companies are maxed out and his credit has been negatively impacted.

What happened to bama's promise that when he signed the TARP check, it would encourage banks to lend more to consumers and businesses??????????????
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post #16 of 21 (permalink) Old 08-25-2009, 10:37 AM
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Fuck the credit card companies. Chase and Discover have ruined my good friends credit and now his small business is going down in flames. He had great credit and had a Chase card with $16,000 credit limit and was paying on a $6500 balance with them. Same with Discover card. These companies both sent him a letter out of the blue stating they were lowering his credit limit to $6800. So what's the problem? Now his credit report looks like his credit cards with these companies are maxed out and his credit has been negatively impacted.

What happened to bama's promise that when he signed the TARP check, it would encourage banks to lend more to consumers and businesses??????????????
I agree. I have closed all but two of my credit card accounts, one used to pay utility bills that is reconciled in full every month, and one in reserve for travel, rental cars, etc. The rest of the cards will not ever be coming back in my case. Might I add Citi to the fuck you list along with Chase?
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post #17 of 21 (permalink) Old 08-25-2009, 12:12 PM
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Does it hurt your credit to close an account. I have a card with a 9500 dollar limit. I have had it since I was 18... never been late etc. I have been close to maxing it out when my wife was in and out of hospital but never went over my limit. I am now with a few hundred of paying it off . It will have a zero balance next month.

They sent me a letter back in January stating a huge insterest rate hike.. so I declined which means my account will be closed when card expires ( next month). Well not that is practically payed off they said I can keep the account active if I want but I still have to take on the new higher % rate.

Should I just let it cancel out or keep it active and show that I have a 9500 card with a 0 balance on my credit report?
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post #18 of 21 (permalink) Old 08-25-2009, 12:17 PM
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Keeping it active. Not using it will be the best option for keeping your credit score higher because your debt to available credit ratio will be lower.
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post #19 of 21 (permalink) Old 08-25-2009, 01:52 PM
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Keeping it active. Not using it will be the best option for keeping your credit score higher because your debt to available credit ratio will be lower.
Thats what I thougt.
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post #20 of 21 (permalink) Old 08-25-2009, 03:27 PM
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I'm glad I'm not dependant on the plastic... or indebted to it, for that matter.
I feel sorry for the modern slaves that give all their money to their master, the banks.
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post #21 of 21 (permalink) Old 08-25-2009, 03:47 PM
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Hell yeah, Proverbs 22:7 - The rich rule over the poor, and the borrower is servant to the lender.
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