Comments on: Where The Credit Cardholders’ Bill of Rights Stands

By: NtJS

NtJS — Thu, 21 May 2009 02:02:34 +0000

Kosmo – There is a lot that these companies do that is far from ethical. While I’m glad that these abusive practices are being addressed, I also know that it is only a matter of time before they find another series of fun and exciting policies that separate you from your money.

Stacking Cash – The real problem is that insurance companies and other goobers are allowed to use such an arbitrary and irrelevant measure such as FICO against consumers.

By: Dawn

Dawn — Wed, 20 May 2009 14:19:07 +0000

I like the rules. It is too bad that we need them, because most of these seem like pretty common sense/good business practice items to me. Some of what the credit card companies were doing was pretty dirty, if not illegal, and if this is what it takes to fit it, so be it. I understand Michelle’s concern about this being “swatting at flies” but I also think that sometimes it takes a lot of small steps to go the mile. The little things add up, and if these become industry standard, it might help the mortgage companies to wake up as well.

By: Michelle

Michelle — Wed, 20 May 2009 11:39:20 +0000

I’m torn – these are good consumer protectionist ideas, but I feel like They (government) are swatting at flies rather than addressing with a shovel the big pile of manure that’s fostering the flies… And to use another analogy, the CC companies being forced to look to other avenues for revenue development is like squeezing a balloon the volume of air doesn’t change, just its location – the regulation will just push their search for profits and growth in another direction, perhaps onto those who use credit responsibly (as suggested in the NYT article). I wish they would pass a law banning fees on pay-by-phone/pay-online for mortgage companies! I hate that Wells Fargo, with whom I have both my mortgage and checking won’t let me just transfer the payment online, NOR can I use WF’s bill pay to pay WF’s mortgage! If for whatever reason I can’t get to the branch or mail a payment and might need to pay-by-phone (this has never happened, but still!), there’s a $20 or $30 fee for moving money within WF’s organization – that’s robbery!

By: StackingCash

StackingCash — Wed, 20 May 2009 09:00:58 +0000

I’m more concerned about my FICO score than credit card rules. These credit card companies can do a great deal of damage to one’s score if they lower your limit or close your card. How about protection from that? I feel these FICO scores have too much weight these days determining your insurance rates, interest rates, and being empolyable. I can’t believe no one has sued the credit reporting companies for selling information about our personal lives. I’m kind of tired so I apologize if this post is not very polished…
I hope you guys can get the gist of my rant :)

By: Ms. MoneyChat

Ms. MoneyChat — Tue, 19 May 2009 22:44:01 +0000

thanks for this very informative post. did i hear that the bill passed the senate or did i make that up?

By: Kosmo @ The Casual Observer

Kosmo @ The Casual Observer — Tue, 19 May 2009 20:07:15 +0000

I’d even be OK with the CC companies applying payments to the OLDEST debt first – the current practice of applying to the lowest interest debt seems to be of a questionable ethical nature. (And this is coming from someone who doesn’t even pay CC interest)

By: BM

BM — Tue, 19 May 2009 18:41:07 +0000

DD,

Something tells me CC companies are not that stupid to start charging fees & interest to consumers who pay their bills on time. If they do, those consumers will shift to debit card & cash purchases and CC companies are going to loose big on transaction fees , which I think is between 1-3% of the cost of purchase. NY Times article may just be whining by CC companies about the new law

By: DD

DD — Tue, 19 May 2009 17:45:03 +0000

If the Times article proves to be correct, I will stop using credit cards.

By: BM

BM — Tue, 19 May 2009 17:29:34 +0000

There was an article in todays NY Times about CC companies planning to going after card holders with stellar credit and who have never made any late payments. The CC companies are anticipating reduced revenue after the new credit card bill is signed into a law. So to bolster their revenue, we will see CC companies charging annual fee, charge interest immediately instead of giving grace period, cut back on cash backs and rewards etc.