We support reforms to the financial marketplace to curb bad practices by banks and lenders.
Gas Card Holder Beaten Up over One Cent Mistake
Credit Cards
A comprehensive credit card law is now in place that will help end the tricks that trap consumers in high-cost credit card debt. You can learn more about these key rights below. Click here to see when different provisions of the law go into effect.
The new credit card law includes these consumer protections:
Restricts all interest rate increases during the first year
Restricts interest rate increases on existing balances
Increases notice for rate increase on future purchases
Preserves the ability to pay off on the old terms
Requires fair application of payments
Provides sensible due dates and time to pay
Protects young consumers
Restricts issuance fees on fee harvester cards
Requires enhanced disclosures
Places limits on fees and penalty interest
Requires banks to review rate increase every six months
Establishes gift card protections
Click here to read a full summary of the Credit Card Legislation.
Read the Federal Reserve Board’s Tips on the new Credit Card Law.
Publications
- Group letter to banking agencies recommending enforcement action under the CARD Act
July 7, 2010 By Fax (202-452–3819) and First Class Mail The Honorable Ben S. Bernanke, Chairman Board of Governors of the Federal Reserve System 20th Street and Constitution Avenue, NW. Washington, DC 20551 Dear Chairman Bernanke: The undersigned groups are contacting you to request that the Federal Reserve Board examine the banks under its supervision Continue Reading
- Summary of Fed’s Final Rule on August Provisions of CARD Act
The Federal Reserve Board has issued its proposed regulations governing the final sections of the CARD Act which go into effect August 22, 2010.
- Paper statement fees?! What to do about this latest trick
We’ve heard from a number of consumers on our previous blog, Paper statement fees?! Credit card issuers’ latest trick about their frustrations with receiving their bills in the mail and surprise(!) are charged a fee for it.
- CU comment to the FRB on Regulation Z proposed rule
Regulation Z: Truth in Lending, Federal Reserve Board Docket No. R-1384
- Summary of Fed’s proposal for final CARD Act provisions
Federal Reserve Board Proposed Rule, Regulation Z March 2010 The Federal Reserve Board has issued its proposed regulations governing the final sections of the CARD Act which go into effect August 22, 2010. The Agency will be accepting public comment on the following provisions which relate to the size of penalty fees and the process Continue Reading
- A Consumer’s Guide to Using Credit Cards
As a consumer, it pays to be smart when choosing and using a credit card. Click the link below to access a site maintained by the Federal Reserve Board which provides a basic guide to navigating the credit card process. – Learning more about credit card offers – Understanding your statement – Credit card repayment Continue Reading
- Have you been ripped off by the big banks or other lenders?
Have you been hit with unexpected fees that drain your bank account? Have you taken out a loan that turned out to be full of tricks and traps? Consumers Union wants to hear your story because it will help us illustrate why consumers deserve stronger protection. Tell us your story so we can build support for real reform that helps consumers not the big banks!
cu.convio.net/shareyourmoneystory
- What You Need to Know: New Credit Card Rules
The Federal Reserve Board’s new rules for credit card companies mean new credit card protections for you. Here is the Board’s summary of the key changes you should expect from your credit card company beginning on February 22, 2010.
- Credit Card Comments to the Federal Reserve
Consumers Union asks the Federal Reserve to make sure credit card companies don’t try to get around the new limits on rate increases and fees through creative new charge schemes or other unfair demands on customers.
- We got the credit card banks on the run!
Your complaints over interest rate hikes, ridiculous new fees and higher minimum payments were heard loud and clear! The House just froze rate hikes on your credit card balances, and gave you new protections starting Dec. 1 — just in time for the holidays. Now we need the Senate to hear us and do the same! Email your Senators right now and tell them you can’t afford to wait for a February law to stop the credit card companies’ abusive tactics.
Press Releases
- Credit card law marks one year anniversary on Feb 22
CARD Act has provided significant protections for consumers but CU calls for the CFPB to enact more reforms.
- New credit card & gift protections begin August 22
New regulations will help limit credit card and gift card fees and require banks to re-evaluate interest rate hikes
- Fed Issues New Credit Card Regulations to Protect Consumers
New rules offer important safeguards to limit penalty fees but don’t go far enough on unfair interest rate hikes
- CU: Fed should roll back credit card rate hikes
Consumers Union calls on the Fed to require banks to roll back unfair credit card interest rate hikes
- Fed issues proposal to rein in credit card fees
CU: Proposed regulations offer important protections but should be strengthened and implemented sooner
- New credit card protections start on February 22
New law offers significant safeguards but consumers need to be on the lookout for new tricks and traps
- Fed issues final credit card regulations
Consumers get sweeping new credit card protections starting February 22
- Fed urged to stop new credit card tricks
CU calls on Fed to strengthen proposed regulations to protect consumers from new abusive practices
- Senator Dodd Unveils Discussion Draft for Financial Reform
The draft includes the creation of a Consumer Financial Protection Agency, an independent watchdog to crack down on abusive lending terms, hidden fees, and other tactics employed by some financial service providers.
- CR poll: Consumers angry at credit card companies
October 5, 2009 CONSUMER REPORTS POLL: CONSUMERS ANGRY AT CREDIT CARD COMPANIES; CITING UNFAIR TEATMENT WHEN CLOSING ACCOUNTS Forty-Five percent of consumers say they are paying less with credit than a year ago. YONKERS, NY — Credit card holders are angry. More than a one-third (32%) have paid off and closed a card since January Continue Reading
Blog Posts
- Pew Study: Consumers At Risk From “Business” Credit Cards
Pew released a report this week finding that consumers are getting marketed “business” credit cards that exploit loopholes in the CreditCARD Act – beware of this trap!
- CARD Act’s 1 Year Anniversary
Today marks the one-year anniversary of the CARD Act. The CFPB should pick up where the legislation leaves off.
- College Students Still Big a Target for Credit Card Companies
73% of freshmen are seeing card issuers marketed to students off campus.
- BofA’s “$0 Liability Guarantee” – Is It As Good As it Sounds?
Bank of America has rolled out a new “$0 liability guarantee” on their debit and credit cards, but it might just be federal law. BofA customers need to be aware of their rights under current credit and debit card regulations, just in case BofA’s policy doesn’t cover everything.
- Professional Cards: Watch out for this CARD Act loophole!
Card issuers have stepped up their offers for professional cards, which are not covered by the CARD Act.
- Back To School: Campus Financial Tips
Tips for Bank Accounts, Credit Cards, and Prepaid Cards for college students
- DYD on the Rachel Maddow Show- Watch Here
Watch DefendYourDollars.org Gail Hillebrand talk about how the CARD Act will affect you on the Rachel Maddow Show
- Consumers Get New Credit Card & Gift Card Protections on August 22
Consumers seeing benefits of the CARD Act
- Final Credit Card Rules on Penalty Fees and Interest Rate Review
The Federal Reserve has issued the final regulations for the last provisions of the CARD Act which go into effect on August 22nd.
- New study shows that banks don’t price penalty fees for risk.
A new report by the Center for Responsible Lending proves that, despite their claims, banks do not price credit card late fees for risk.
News Articles
- Fed proposes limits on credit card penalty fees Source: AP (Wednesday March 3, 2010)
The Federal Reserve on Wednesday proposed strict limits on penalty fees and other charges that credit card companies can slap on customers for missteps such as late payments or going over credit limits.
- A proposal for reining in credit card fees Source: New York Times (Wednesday March 3, 2010)
Rule calls for credit card issuers to revisit interest rate increases made during the last year — and there have been many — to determine if the increases were still justified.
- What Fed proposal does, doesn't do Source: USA Today (Monday March 8, 2010)
The Fed’s proposal gives the card industry a “big out” when evaluating whether consumers’ interest rates should be lowered
- Bank credit card fees keep going up
In recent months, many issuers have raised interest rates for borrowers even as the Federal Reserve has cut rates. They’re doing so ahead of a federal regulation that takes effect next year, curtailing their ability to raise rates on existing credit card debt, says Bill Hardekopf, CEO of LowCards.com.
- The reason behind Capital One's rate increase
Last month, Capital One raised some eyebrows by significantly increasing their rates on new customers on the majority of their credit cards. The advertised annual percentage rate on these 15 cards increased from an average of 12.45 percent to 17.24 percent. One could ask, “What’s left in your wallet?”
- How to lower your credit card interest rate
If you have a credit card, you might be getting a letter in the mail with some bad news: your credit card company is jacking up your interest rate. Never mind if you’ve been an excellent customer, whose always paid your bills on time. Some of the biggest credit card companies, including Capital One, Citibank, and HSBC, are now raising rates on millions of customers.
- Credit card firms continue to raise interest rates and fees
Has the interest rate on your credit card gone up recently? If so, you’re not alone. In the past several months, a number of credit card companies have instituted changes to customers’ accounts, increasing rates and tacking on fees.
- House of Cards
These tactics are not going to improve the credit-card industry’s dismal reputation. They’re also not going to help an economy in recession, since reduced credit lines take away an important cushion for consumer spending, and higher interest rates and increased fees are likely to drive more people to default.
- American Express, Chase cut card limits lowering credit scores
About 45 percent of U.S. banks reduced credit limits for new or existing credit-card customers in the fourth quarter of 2008, according to a Federal Reserve January survey of senior loan officers. Financial institutions may slash $2 trillion in credit- card lines in the next 18 months, Meredith Whitney, a former Oppenheimer & Co. analyst, wrote in a Nov. 30 report.
- Buy something, or else
One of the biggest causes of the financial crisis was that Americans were borrowing (and spending) more money than they could afford to pay back. So how are credit-card issuers reacting to consumers’ attempts to live a more financially responsible lifestyle? They’re threatening to cut their credit cards off if they don’t spend enough.
Cordray Appointed!
The administration finally appointed Cordray after months of fruitless negotiation with opponents who wished to weaken the agency itself before they would vote to confirm its head.
A group of 45 Senators blocked anyone from leading the new Consumer Financial Protection Bureau--until January, when President Obama finally made a recess appointment. Finally, someone to protect hardworking Americans from the abusive tactics of banks, credit card companies and Wall Street. Read more.
Worried about retirement?
The stock market has been unusually volatile, plunging hundreds of points, creeping back, only to plunge again. It is hard to stay disciplined about saving when every dime you’ve invested can evaporate in a day.
What is your biggest concern about your own retirement? We want to hear from you.
Where to complain
Online, by mail, phone or fax... Agencies need to hear from you!
Stories about Credit Cards
Over the past seven years, by paying his creditors on time all of the time and monitoring his spending, Brian had successfully increased his credit score from the low 600’s to a recent 705.
Brian of Gardnerville, NV
In June 2008, Ronald lost his job and now relies on unemployment checks as his only source of income. At the end of 2008, he was late on a payment by one day and his Chase Mastercard interest rate went from 4.99% to 24.99%.