Comments on: Credit CARD Act (Credit Cardholders’ Bill of Rights Act of 2009)

By: Linda Ferrrari

Linda Ferrrari — Fri, 15 May 2009 20:03:59 +0000

Hi Holly. I can tell you exactly what they do to consumers with low credit scores — make more money! Last year consumers spent $28 billion on higher interest rates and penalty fees due to low credit scores. Can you imagine how much is going to be paid in higher interest rates and fees this year due to the economic crisis? And the bill doesn’t go into effect for yet another year.

As an expert in the area of credit, I could not be happier about this new legislation, however, as an expert I also know that it’s only the beginning of what needs to be addressed in this area. I appreciate sites like this keeping consumers involved and aware.

By: Andy

Andy — Thu, 14 May 2009 19:58:25 +0000

While this may seem great on the face of it, companies will pass on these extra costs to consumers via credit card annual fees, tigher rules and more fees. All bad and will limit credit when the economy needs it the most. Be careful what you wish for President Obama. The consequences could be dire.

By: Holly

Holly — Tue, 05 May 2009 16:21:50 +0000

So sad that the cc companies are worried about their exorbitant profit margins! I have an 820 credit score, yet when I paid my cc balance in full only ONE DAY LATE–which was the first time I have ever been late paying ANY bill EVER(I was late due to the fact that I was in the middle of a mortgage refinance and misread the cc’s due date)– the cc charged a $39 late fee, changed my rate from 7.9% to 23.9%, and charged interest based on the 23.9% rate! After I called them, they agreed to change the rate to 14.9% (still way too high for an outstanding customer of 14 years). I’d hate to see what they’d do to those poor suckers w/credit score in the 600 range! They are all bottom-dwellers.

By: Kyle

Kyle — Fri, 01 May 2009 11:31:45 +0000

I think we need some more restrictions on credit card companies but I don’t know that you can outlaw charging for payments over the phone. A lot of these companies are using a third party service to handle the ACH payment, like BillMatrix. They charge the company a fee which is then passed on to the consumer. Are they going to make postage free as well, it already costs you 42 cents to mail your payment in…

By: Julie

Julie — Fri, 01 May 2009 03:25:28 +0000

If a consumer is such a bad credit risk that jacking their rates through the roof is the only way to make money off of them, it would be much better for them if they weren’t extended credit at all.

By: Flexo

Flexo — Fri, 01 May 2009 02:28:49 +0000

Jimmy: The bill doesn’t outlaw sub-prime credit card companies, it only restricts certain practices. No credit card company’s survival relies on double-cycle billing and no-warning rate increases — even sub-prime lenders. If you’ve treated customers fairly — and I believe you when you say you have — then you have little to fear with this legislation.

There is one piece of the legislation that refers directly to sub-prime credit issuers that restricts certain fees only after an initial fee is charged that is more than 25% of the available credit limit. I’m sure sub-prime credit companies will survive this legislation; or, if one does not survive, that it will have little to do with the legislation. Credit card companies are practiced in finding ways to make money off consumers regardless of the circumstances.

By: Jimmy

Jimmy — Fri, 01 May 2009 01:37:31 +0000

Assuming this bill becomes law, it effectively puts my company (primarily a sub-prime credit card company) and about 1,500 of my fellow coworkers out of business. Not only that, but our entire customer base (millions of people) will no longer have any access to credit. Providing credit to those with less than perfect credit histories will no longer be profitable, yet it will entail the same risk and that is not a sustainable business model.

Before you wish us good riddance, I can ensure you that we’ve always treated our customers fairly and have gone above and beyond all government mandated compliance. Consumers, you are shooting yourselves in the foot by supporting this piece of legislation.

By: SJ

SJ — Thu, 30 Apr 2009 23:10:30 +0000

Hrm yay consumers can work on auto pilot now -_-

So when are they going to pass the credit cardholders bill of responsibility ?

By: Jennifer

Jennifer — Thu, 30 Apr 2009 21:51:21 +0000

I don’t trust the government, so I have to wonder who this really benefits. I think it’s a bad idea to assume that credit card companies will have to be honest and operate with integrity simply because there’s a bill that passed. Consumers still need to take responsibility for their finances and their actions when applying for and using a credit card. Don’t expect the government to fix this for you.