We support reforms to the financial marketplace to curb bad practices by banks and lenders.
Time line for Credit Card Protection Effective Dates
Here’s the whole bill for you to explore.
February 22, 2010:
Most provisions of the credit card bill go into effect.
August 20, 2009:
The following provisions go into effect.
• 45 day notice requirement for rate increases and other significant changes. (Sec. 101)
• 21 day statement mailing requirement. (Sec. 163)
November 18, 2009:
Report on interchange fees. (Sec. 501)
November 22, 2009:
Federal Reserve Board to issue guidelines on the following provisions:
• Establishment of a toll-free credit counseling phone number. (Sec. 201 (c))
• Report to Congress on financial literacy programs. (Sec. 510)
February 16, 2010:
Regulations regarding stored value cards. (Sec. 503)
February 22, 2010:
Federal Reserve Board to issue a final rule on the following provisions:
• Interest rate reduction consideration requirements (Sec. 148)
• Reasonable and proportional penalty fees. (Sec. 149)
• Preventing deceptive ads for credit reports. (Sec. 205)
• Gift card protections. (Sec. 401)
• Board review of small business credit plans and recommendations. (Sec. 506)
• FTC study on emergency PIN technology. (Sec. 508)
May 22, 2010:
Report on English fluency and financial literacy.
August 22, 2010:
The following provisions go into effect:
• Interest rate reduction consideration requirements. (Sec. 148)
• Reasonable and proportional penalty fees. (Sec. 149)
• Gift card protections. (Sec. 401)
December 31, 2010:
Study about marketing products in conjunction with credit card offers. (Sec. 509)
May 22, 2011:
Review and report on consumer credit plans and regulation. (Sec. 502)
I joined into this to reform credit and now it looks like I am going to be paying for it. I do not carry a balance and pay it off each month.
I have no annual fees on any of the three cards I have. Now this may all change for me, a responsible credit card carrier.
As usual, the people who are conscientious in all of the daily actions wind up paying for the ones who are not.
with all due respect Marty the credit card card companies dont care if you are conciencious or not. Perhaps you havent heard the news but rate hikes, credit reduction, hidden fees, late fees, atm fees,and other measures used to rob the wallets of the “unconciencious” were now being applied to all credit card customers regardless of their track record. Without this legislation you would have no protections at all from such activites. If you have been anouced a rate hike by your credit company in advance(as I have despite having no late payments) it is more welcome than the alternative, suddenly being hit with astronmical fees or rate hikes from out of no where!
This law will improve some of the concerns regarding the credit card industry abuses that have been going on for years. But as always, is full of holes and by the time the law has to be complied with, the 6 banks (credit card companies) that control the industry will have position their portfolio in a position that will allow them to keeep taking advantage of the consumer (legally).
by the time the law goes into effect, the banks will have lower the limits on credit card lines, raise interest rates to the 18%’s, forcing good customers and marginally (for years) good customers to turned in their credit cards, via minimun payments increases,interest rate hikes, or forced cancellations. The reason they can get away with it is becasue most of these consumers have outstanding debt which they are paying religiously every month. So if you have debt oustanding these are the options they offer: cancel the card and pay the old rate (until you make a mistake)or you pay the 25% to 30 % interest or don’t pay and will ruin your credit for 7 years. i would rather probably take the loan shark option: i’ll break your arm but you keep your credit.
i have plenty of credit cards which i pay on time. and i know what i signed when i entered into the “contract”. what i’m not prepare for is to every month have to call the companies to fight:
1. We have to changed the terms because you don’t use your card enough (or the manner they want you to use it). 2. You only make the minimum payment(on time)every month.
3. Your credit report shows (some activity) never mind that i’m always looking for a better deal, etc etc. GOD forbid that you pay late.
i can’t describe the responses that i have recieved when contacting the customer service departments of these banks or companys services. it makes me doubt myself if i’m sane.
nowadays does not make any different whether you are an informed consumer of a dumb one. The moment you make a mistake with all these “binding contracts” that only binds the consumer, you are screwed.
And these things happen under the umbrella of at least 10 different federal consumer protection agencies and probably 100′s state agencies.
The first item on the bill should read:
This law is retroactive to January 1st, 2009
Yeah, I’m with J Jones. I don’t see where this is a bad thing for anyone. My mom just got a notice of a hike to one of her cards she’s had for a long while and she’s never late. She has a large balance and theyr’e going to charge the newly doubled rate to her existing balance. With the new law, they wouldn’t have been able to do this.
I have a credit score of over 800 and been a credit card user for over 40 years. I am fanatical about paying my credit card bills on time and more than the minimum payment. My income is about $1000/mo. because, after working since I was 16 years old, I am now ruluctantly on Social Security Disability so I have to resort to credit cards for medications, very large dentist bills, etc. In April I received a letter from Chase Bank stating that I hadn’t paid that month’s bill. The only reason I can possibly think of is that I didn’t receive it. I immediately paid the minimum due that day, but they raised my interest rate to 29.99% plus a $39 penalty. I have been having an ongoing battle with the company all month both by phone and letters to Gordon Smith, the CEO. It has, of course gotten me nowhere. I have withdrew money from my small retirement investments at a bad economic time in order to pay off the balance but I refuse to pay the $212 finance charge, which I consider usury, and the $39 penalty.
I’m glad that the government is doing something about Credit Cards, but I’m afraid the proposed dates are not soon enough. Totally frustrated!
By the time this goes into effect the banks will all have raised their rates so it will not affect them anyway. I thought the whole idea of supporting this bill was to get control sooner (and I did not expect a few months). Bills can go into effect the day the President signs them. Why not this one?
Marty Dark has a good point, but the issue is that people made decisions to carry a balance at a certain rate, and then the rate was jacked up on that existing balance. Just like the local corner shark would do.
This practice is actually legal, and there is no limit to the interest rate that they can charge you. We now have to wait 9 more months for the credit cards to finish taking people to the cleaners before the law goes into effect.
It certainly serves the %^*$ing credit card companies right that no one will want to use their credit cards for Christmas this year…
With all the people on the internet complaining about these banks (arrrggghhh jerks at chase… wamu was nice…) we aught to all clog the phone lines, snail mail boxes, email inboxes, send the shirts off our backs, etc. to the President, our representatives and these banks.
A bunch of fans did this to scifi years ago when they canceled Farscape unexpectedly. It clogged them up for months… they got thousands of packaged bras in the mail over a comment their president made. Could you imagine the massive amount of mail they could get from just a small portion of the pissed off credit card customers!
We should also (as Becca above states) not use their cards during Christmas. Cash is king. Kids don’t need a tree full of crap anyway!
What’s going on is absolutely ridiculous!
After the banks were given BILLIONS of dollars from the government (and thus us, the public) to bail them out, the still have the cajones to “rape” their customers – all the while claiming hardship. Boo hoo – they have all been making a profit again for a while now, and we’re all struggling. Those of us who have never missed or been late with a payment have now had rates raised to make it difficult to afford to pay. They say they’re trying to make up lost money. I say would they rather be making money on the lower interest rates being paid or not get anything because they raised the rates too high to afford?
I’m with Sondra, why can’t this bill go into effect immediately like any other bill would? Why give the credit card companies more time to screw everyone?
I just got done talking to American Express who I have been a member for years. I have always payed on time, and I never thought my rates would go up for I had a fixed rate. Suddenly I recieve a letter from them stating that the fixed rate is now changed to a variable rate. Well about the same time I hear in passing that a new Credit card bill has been signed by the president. Well, I decide to call them up and have them close the account and freeze the rate. Well, to my suprize I’m told that the bill has not been enacted yet. Go figure we are in this mess because of their greed, and when they need help we the tax payers rush to their aid. However, when it comes to aid for the comsumer we have to wait 9 months, so the credit card companies can raise their rates or position themselves to raise our rates legally irregardless of the law. What a world we live in.
How about a 90 day payment moratorium? There are millions of bank victims who would love to kick some serious bankster ass.
P.S. I’ll bet that ” Marty” is a hysterical, talking points neocon trying to pass as an “independent.”
The things you ahve mentioned are very appropriate and up to the mark as I learnt a lot from your web site and it is great to be the part of your blog.
Carrol Spncr
Credit card offers
I sent consumer request for the credit card this is the reply I got
October 16, 2009
Dear Mr. Del Masto,
Thank you for taking the time to contact me about S. 414, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009. I supported this legislation and was pleased that a similar bill was passed by Congress and signed into law by President Obama in May.
I strongly believe that the Credit CARD Act, of which I am a proud co-sponsor, will provide much needed protections and tools to combat unfair measures taken by credit card companies. The Credit CARD Act protects consumers from ever-changing interest rates, excessive fees and complex contracts. This legislation will help New Yorkers save thousands of dollars a year and safeguard families across the nation from unscrupulous practices promoted by many credit card companies.
As a working mother of two young children, I understand what families are up against in these challenging economic times. Many New Yorkers are on a tight budget and are struggling to pay for food, gas and other basic services. That is why I am committed to working with my colleagues in Congress to protect American families from unfair practices that often have a devastating financial impact. I am pleased that the Credit CARD Act will strengthen consumer protection in the credit card market. Thanks to this legislation, New Yorkers will finally have the fair and reliable service they deserve.
Thank you again for taking the time to share your views on this issue with me. For more information on this and other important issues, please visit my website http://gillibrand.senate.gov and sign up for my e-newsletter.
Sincerely yours,
Kirsten Gillibrand
United States Senator
I contributed to Consumer’s Union to fight for credit card reform.
CU claimed victory months ago in the battle. I asked What victory?? Here it is, months later and the CC’s are screwing the hell out of people and ruining small business – which is the lifeblood of our economy. I own a small business, and also have a six figure job. I built up hundreds of thousands of dollars in credit lines with CC’s from businesses that I owned. I have never defaulted or paid late in my life. Earlier this year they started slashing my lines – SO WHAT? Well I wouldn’t care, except for one thing – my credit score. They unilaterally ruined my credit score by slashing my credit lines. This made it impossible for me to get a home equity loan. I wanted to expand my business and eliminate all CC debt. But now… I couldn’t get an equity loan (with 75% equity in my house!) even for a few thousand, WHY? My credit score plummeted to the 600′s. But yet, I was not late, nor never had a black mark ever!!. Then my insurance doubled, WHY? because of my credit score. Then they started giving me a hard time at work, why? My credit score! The CC’s unilaterally did this to me. Ok so CU scored some big win? No!!! because none of the rules are in effect yet. And what happened this week – now the 30% interest or close the account letters are all coming at the same time. 4 in one week. So now they want to shut down my credit entirely? For no reason??? AFter my tax dollars bailed these fraudulent greedy pigs out? My customers are now not paying because their cards are getting shut off. This is all ruining my small business. So, they are making a personal attack on those of us with Good credit and good financial management skills. I say it’s time for a revolt! I say it’s time we all stop paying these pigs until they reverse all of this. I know there are others who already started this revolt, but it needs to become massively viral and we all need to do it. I’m ready. Hope you’ll join the CC Revolt! This is even more important than the Boston Tea Party!
I am very disappointed in this so called credit reform. After cc companies started to increase my rates even though I have never been late and always paid more than the minimum, I decided to cancel the cards. Imagine my surprise when I found out that this greatly affected my credit score. I absolutely refused to pay the outrageous interest rates of 18-26.99%. In exercising my right not to pay this rate, and cancelling my cards, I, (along with thousand of others) are now being penalized in our credit scores. It’s just another rip-off from the credit card companies and they are getting away with it!
My Amex Blue card… I have an 850 fico score, have never been late, have never gone over, have never missed a payment, and I always pay more than the minimum…. but my rate went from 9 to 15.25%. I called them and was told it was a business decision. They refuse to lower it. So… We bail them out for making bad loans, and they force more credit card holders into default and then claim more bad loans. Nice! You don’t tell your enemy the date you are pulling out, and you don’t give the cc companies a half a year to jack everybody. Common sense. They first lowered my limit by 15,000 dollars without telling me…. which was fine, no problem. When that didn’t put me into any kind of penalty, they almost doubled my rate. Meanwhile, the fed fund rate is at almost 0 and prime is at 3.25%…. so they are paying less for the money they loan us then at any time ever in history, and charging us more. Why? Because they can. I believe in most industries that would be called price fixing. This on top of all the other crap… higher atm fees, transaction fees… will they ever have to accept any of thier own losses, or will we keep getting the tab? SO MAD!!!!!
I have not used my account for over a year and half american Expresshas kept charging me late fees and will not work with me on this they keep telling me to bring it current calling me all times of the day and night.to harress me I need some one who can help me get this resolved I talked to 9 diffrent peopleand each one wanted information .
I have not used my account for over a year and half american Expresshas kept charging me late fees and will not work with me on this they keep telling me to bring it current calling me all times of the day and night.to harress me I need some one who can help me get this resolved I talked to 9 diffrent peopleand each one wanted information .
My husband and I have never been late with a credit card payment, never missed a payment nor ever gone over our limit. In December ’09, after paying off Bank of America I tried to use the card (that we have had for 15 years) the $25.00 charge was denied. When I called they said they had decided to close my account, just a business decision. The next month when we opened other cc bills all of the interest rates, which were locked at 5-7% suddenly went up to 21-29%, with no warning. Each one said the same thing… just a business decision. I then checked and found that our credit rating went from near perfect to into the toilet. The payments are now so high that we can’t possibly keep up. We can’t get a mortgage on our house to pay them off because of the housing values going into the can. We are honestly looking at being forced into bankruptcy. Why is my question. As I said, we never missed a payment, never late. How is this fair?
Before I share my bad experiences with credit cards, I’d like to point out the things that have improved since the reform act went into effect. 1)When somebody in my house goofs up and uses one of my debit cards for a purchase amounting to more than is in the account, the purchase kicks back without a $34 Overdraft Fee. The same works for tricky merchandisers on the internet with buried additional or ongoing charges. I keep a separate account for those purchases and only fund what I think I’m paying for the item. Even when I’ve used a credit card, this year, for such purchases, I’ve had minimal trouble with getting refunds through the dispute system on my cards. Also, the disclosure portion of my bills show me how long it’ll take to pay off balance under various payment scenarios without me having to get my calculator out and still end up guessing.
I’m 50 years old and spent most of my life paying cash for everything. About 10 years ago, I started taking advangtage of credit card offers in the mail because it’s nearly impossible to rent a car or do other things, nowadays, without a credit card. When my sister and her family moved into my house at about the same time, I bought furniture and whatnot on my cards to make their welcome warm in the apartment I rented for them next door. Beyond that, I went on to finance some of her children’s college expenses and bought tools for my business. It wasn’t a big deal. We had 5 incomes in the house (they had moved into my house by this time). I was faithful in paying every month and doing great. My credit score had never been better and I nearly bought the house I was living in at the height of the real estate bubble, my score was that good.
Then, one day, just out of the blue, US Bank (my largest balance) decided that they wanted to boost my interest rate to 28.99%. I had no late payments or anything like that. I guess it was one of the aforementioned “business decisions.” This was in late 2006. That was a huge hit. But I kept on paying for a few more months till all my other cards were acting up in the same way. My anger got the best of me and I stopped paying US bank first because they were the first one to do it to me.
I had no idea how well we had come to rely on credit cards for groceries and gasonline every month. When I started paying cash for our necessities, I soon found out that I was unable to pay other credit card bills. And so, like dominoes, I quit paying each company who had screwed me first, one by one, till it was all I could do to pay my Chase cards off. Chase treated me awfully well with credit cards and I was very sorry that they were the last dominoes in the line.
I’ve continued to pay these debts off. It got much easier when my credit rating had been wrecked. I’ve typically been paying about 25% of the balance I owed when I defaulted. Oh, sure, I could just say “screw them all!” and never pay them. But I’m not that sort of guy. Even though I think our creator wants me to pay my debts in this world, I surely am tempted to make those greedy bankers take their lumps. So I’m settling for taking their payoff offers.
I did keep my niece’s Capital One card in good standing all the way through this because I didn’t want her take any lumps for my not seeing bankers for what they are. Plus, it’s a big dream of hers to buy a house when she becomes a school teacher and I don’t want to wreck that. Well, really, it’s only a $300 limit and I’ve actually been able to swing it through all this mess.
My Roth IRA is history. But my Snap-On Tools account is paid in full. Other accounts were paid in full before I defaulted on them. Without looking at my credit report printout, I’d say that about less than 1/4 of my cards were paid off without default. And more than half of them are still not paid off.
Ironically, I’ve received and accepted credit card offers in the mail just this year. I’ve always regretted losing my Chase Bank cards with my sister’s family to support. And, ostensibly, because I pay off every balance, every month, down to $50, they don’t try any funny business like Capital One was doing in 2008 when I was paying balance every month for my niece. They were charging $39 Overlimit and Late Payment fees, which was just silly. I had the documentation to prove that it wasn’t so. And, yet, after hours and hours of phone calls, when I got one of the weaker “customer service” representatives to discount the bogus fees, he only credited the bill for half of them.
All in all, so far, I’m pretty happy with the changes. Because I keep my balances low, lol, my credit rating is nearly as good as it was before this all happened. I guess pluggin away at paying everything off really helps, even though my credit report looks like a ship wreck that really should have sunk.
I have a good one to add. How about an out of tow card selling the balance to a local lawyer and he garnishes your paycheck, I lost that job and he garnished my bank account and I’m recieving unemployment and had some insurance money from my grandmother’s demise. He garnished my account for 10,000 and the original amount was 6614, I don’t need to say I didn’t have 10,000. What is going on with those of us on main street?
There are not to many people out there that remember the 70′s, but back then if a bank charged more then 18% interest they called it Loan Sharking and people actually went to jail for that. A 30% cap only confirms that the politicians are either in the banking business or sleeping with someone who is or both. I’ve been doing my banking with a credit union for a number of years now and tried to warn people about the sneaky stuff banks were doing, they all looked at me like I was nuts and found out the hard way. I was watching an old western when I finally realized that the guy on the horse wearing a bandanna over his face and chasing the Wells Fargo stage coach was not the bad guy. He was a customer who was pissed off at the bank for cheating him. The term BANK ROBBERS was twisted by the banking industry so that people would think that the guy chasing the stage coach was a crook when in fact the term BANK ROBBERS was referring to the Bank being the Robbers. The bankers said they could prove the guys chasing them were crooks because they were trying to hide their faces by covering them with bandannas and everyone bought their BS. No one stopped to think that they might have the bandannas on their faces to keep the dust from the stage coach out of their nose and mouth. So now that we all know the truth about the banks, I only have one question for all of you……. Why are you still doing business with Wells Fargo, Bank of America, Chase, Citi Bank, Etc., We all know they are crooks and you are still letting them hold your money? You are still doing business with someone who has proven they are not trustworthy! Find yourself a non-profit credit union and tell them big banks to shove it. And for those of you who don’t know banks are not the only source of money out there for things like home loans, there are all kinds of private investors and funding companies who will sell you a mortgage and service the loan themselves. That means as long as you have that loan you will be doing business with the company you chose to do business with.
All this law did was prevent my dog from getting a credit card and jacked my interest rates up close to 20% for no reason except that this law allows them to do it.
New credit card laws, not enough or soon enough.I see a different picture which our law makers receive millions of lobbists dollars. Sure the public crys out to do something, total reform is not in the congressman’s best interest.
Math being a proven sceince, the banks don’t make mistakes. There is no immediate pain in using a credit card, but pay for things daily with cash, even large purchases one begins to ask, ” do I really need it.” Credit card payment cycles have moved to 23 days. I live in a 30 day month, if I’m not careful I will get caught not having enough money to pay all my monthly bills. People resolve to take respondiblity for the debt we each created. Start using cash when possible and get the credit debt under control. Then use one card for securing rentals, mail orders, etc. But, let’s stop living beyond our pay as though we are entitled.