Sometimes the credit card industry amazes me. Case in point. Federal regulators this morning adopted new rules that will allow credit card companies to raise interest rates only on new credit cards and future purchases or advances, rather than on current balances.The rules of free roulette games also restrict such lender practices as allocating all payments to balances with lower interest rates when a borrower has balances with different rates. At last some, some consumer balance, at least in principle.


So what is the reaction of the credit card industry? You know, the industry that will have its own bailout/bad debt issues if the recession worsens, sends preapproved credit cards to fox terriers and routinely hikes interest rate because the sky is blue.

They claim the changes also could make it more difficult for millions of people with bad credit to get a credit card and that we'll all pay higher borrowing costs. I fear that's true because the industry is about to lose absolute control, and probably will step up assessment of fees, penalties and interest rate adjustments between now and 2010 when the rules actually take effect. And the current economic crisis, which both borrowers and lenders, contributed to offers an excuse for another year or so of nonsense.

Makes me so mad.

Here are a few of the new rules:

• Placing unfair time constraints on payments. A payment could not be deemed late unless the borrower is given a reasonable period of time, such as 21 days, to pay.
• Placing too-high fees for exceeding the credit limit solely because of a hold placed on the account.
• Unfairly computing balances in a computing tactic known as double-cycle billing.
• Unfairly adding security deposits and fees for issuing credit or making it available.
• Making deceptive offers of credit.

News Sources:-
http://dallasmorningviewsblog.dallasnews.com/archives/2008/12/credit-card-rou.html
Jim Mitchell - 8:43 AM Thu, Dec 18, 2008