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Finally, some new credit card regulations happen to be passed by federal regulators in their make an effort to protect consumers against arbitrary increases in rates of interest and other unfair practices. The new rules aren't effective until July 2010, and we ought to wonder if they will really help whatsoever. The credit card industry is probably the most despised sectors of our business community with regards to service and unfair business practices. With good reason too. Credit card companies play around like they are the rulers from the kingdom, and we are mere peasants. They act this way because, quite frankly, that is precisely the way our credit driven society is becoming. While the new federal regulation might look good in writing, there is not much enforceable consumer protection into it. Credit card companies are just extensions of the bank. And banks are in business to acquire your money, any way they may. If the banks feel like a merchant account is not producing
enough revenue on their behalf, they will just create a new fee or raise rates of interest. Why would they do this? Simply because they can. Unless they are deemed "unfair", the brand new regulations don't prohibit any new fees or raising rates of interest. Well "unfair" is a matter associated with opinion. Unless new regulations are in position that specifically spell out exactly what fees might be charged, and exact monetary limits upon those fees, then the banks are still free to charge anything they want. The same applies to rates of interest. How high is too high? This is a matter of opinion. One of the most effective new rules that can actually help the customer is the inability for the charge card company to raise the interest price on previous balances. This new limitation however, will really only benefit a consumer who's serious about paying down, or paying down, their credit card balance. To do that, the cardholder should be willing to place the card away and onl
y make payments onto it. Otherwise, the bank will simply raise rates of interest even higher on new purchases. It may also prove very difficult to verify their own interest calculations. The interest rate might change multiple times. The more separate interest rates for a passing fancy card, the more confusing the interest calculation may become. A total overall monthly statement balance may contain many separate balances, each subject to another rate. How can a consumer audit their account to be certain the correct interest was charged towards the correct balance? Combine this with determining just how much of the monthly payment was put on each separate balance, and it could all be very confusing if you wish to verify that the bank is actively playing fairly. Confusion of the consumer may be the advantage for the bank. In add-on, what about the interest portion of the balance. Remember, interest is calculated about the total balance, usually a total every day balance. That
new interest is put into an old balance, creating a brand new overall balance. So the credit card issuer is charging interest on interest, that is nothing new. This is one reason why balances can skyrocket unmanageable. So if an interest rate is frozen on the previous balance, what about the brand new interest charges on those older prior balances? What rate is that susceptible to? Rest assured that the bank will declare that new interest is a new cost, and subject to a new as well as higher rate. New rules or aged rules, the credit card company will still obtain money. Actually, your money. The only way to stop as being a victim of their practices it is to get free from their game. Eliminate the debt and use cash or debit cards for the purchases. The money you save, is going to be your own.
Billed as The real Debt Advisor [http://www.TrueDebtAdvisor.com], Jim Vrana's mission would be to educate and empower people to conquer their financial challenges. The time-tested legal procedures used to eliminate credit debt have been used by thousands of individuals with tremendous success. Contact: Jim Vrana Accurate Debt Advisor (800) 637-1785 [http://www.TrueDebtAdvisor.com]
View this post on my blog: http://creditcard.valuegov.com/new-federal-rules-for-credit-cards-offer-little-real-protection/
enough revenue on their behalf, they will just create a new fee or raise rates of interest. Why would they do this? Simply because they can. Unless they are deemed "unfair", the brand new regulations don't prohibit any new fees or raising rates of interest. Well "unfair" is a matter associated with opinion. Unless new regulations are in position that specifically spell out exactly what fees might be charged, and exact monetary limits upon those fees, then the banks are still free to charge anything they want. The same applies to rates of interest. How high is too high? This is a matter of opinion. One of the most effective new rules that can actually help the customer is the inability for the charge card company to raise the interest price on previous balances. This new limitation however, will really only benefit a consumer who's serious about paying down, or paying down, their credit card balance. To do that, the cardholder should be willing to place the card away and onl
y make payments onto it. Otherwise, the bank will simply raise rates of interest even higher on new purchases. It may also prove very difficult to verify their own interest calculations. The interest rate might change multiple times. The more separate interest rates for a passing fancy card, the more confusing the interest calculation may become. A total overall monthly statement balance may contain many separate balances, each subject to another rate. How can a consumer audit their account to be certain the correct interest was charged towards the correct balance? Combine this with determining just how much of the monthly payment was put on each separate balance, and it could all be very confusing if you wish to verify that the bank is actively playing fairly. Confusion of the consumer may be the advantage for the bank. In add-on, what about the interest portion of the balance. Remember, interest is calculated about the total balance, usually a total every day balance. That
new interest is put into an old balance, creating a brand new overall balance. So the credit card issuer is charging interest on interest, that is nothing new. This is one reason why balances can skyrocket unmanageable. So if an interest rate is frozen on the previous balance, what about the brand new interest charges on those older prior balances? What rate is that susceptible to? Rest assured that the bank will declare that new interest is a new cost, and subject to a new as well as higher rate. New rules or aged rules, the credit card company will still obtain money. Actually, your money. The only way to stop as being a victim of their practices it is to get free from their game. Eliminate the debt and use cash or debit cards for the purchases. The money you save, is going to be your own.
Billed as The real Debt Advisor [http://www.TrueDebtAdvisor.com], Jim Vrana's mission would be to educate and empower people to conquer their financial challenges. The time-tested legal procedures used to eliminate credit debt have been used by thousands of individuals with tremendous success. Contact: Jim Vrana Accurate Debt Advisor (800) 637-1785 [http://www.TrueDebtAdvisor.com]
View this post on my blog: http://creditcard.valuegov.com/new-federal-rules-for-credit-cards-offer-little-real-protection/
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