Posted Monday, August 30, 2010
Last week the last provisions of what's known as the Credit Card Bill of Rights took effect in Ohio and across America. It puts an end to credit card companies imposing unexpected interest rate hikes, ridiculous late penalties and hidden fees. And the reforms don't stop there. The law Congress passed last year also tackles gift card practices that have hurt consumers. A lot of the new transparency though is still written in fine print and some companies took some preemptive strikes, jacking up interest rates just before the new rules took effect. Plain Dealer consumer columnist Sheryl Harris will walk you through it, along with an industry guest and Host, Mike McIntyre, Monday at 9AM on The Sound of Ideas.
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Hi Mike! Last year about this time a large bank who was bailed out (Chase) sent out credit card changes which changed NOT the interest rate but the minimum payment - in my - 2% of the the outstanding balance to 5%. That effectvely made my monthly payment 3 times what it was which I could no longer make. Can the banks still do this?
Lately there are many ads on the radio offering to “help consolidate” my credit card debt “if I owe more than $10,000”. Are these outfits legit and what specific part of the new law are they talking about? Is this something I can do on my own?
Bill in Wickilffe
Good morning...I was just wondering what your guests view on debit cards are and if the new laws will affect these???
Yr commentator said that ccard cos did not raise aprs on good customers after the 2008 collapse. This is Not true. I had an excellent 7.9 rate on a chase card forwell over 10 years. Last year I was told it was increased to 12.24% despite flawless payments for the duration of the card. My only optioon was to close the card.
Over the years the credit card companies and banks have developed loan-sharking tactic and they are using credit scores as jail bars. It caught a lot of people that were use to fair treatment in the past off guard. Their misdeeds are all in the fine print and have forced many card holders into bad debt conditions. If costumers are seeing the right information about their credit cards now, what about the people that were cheated during the past 10 years or so. Why all the tricks? It’s like debtors prisons; they keep changing the rules to keep you in debt. It reminds me of the debtor’s prison of the 1700-1800 in New England, which drove our ancestors to risk their lives and travel to New World.