Posted on
November 16, 2009
at
10:17 pm
The amendment proposed by Carolyn Maloney to the
Credit Card Accountability Responsibility and Disclosure Act of 2009, received an approval from the House on 4th November, 2009. The much-required amendment entails an earlier effective date for the Act originally to be introduced in February 2010. Republicans and Democrats joined forces after a tough argument to pass the bill 331-92.In April 2009, lawmakers extended the effective date to February 2010 hoping that the credit card issuers would get the time to change and comply with the regulations. Some members even warned that the time extension would encourage banks to accelerate their unfair practices but the Congress took a lenient decision. Congress demanded that the banks must cease to charge retroactive interest rates, outrageous fees and other unfair practices by February 2010. However, banks thought that it was the only way to recuperate the losses and implemented interest rate hikes adding to consumer debt.If the bill goes through, it will be implemented from December 1, 2009. The Chairman of the House Financial Services Committee stated that if the credit card issuers used the time provided for other than changing and applying retroactive interest rates, it would be a good argument for him to hasten the process. And, he kept his word on that. He rebuked the unfair practices of the credit card issuers stating that risk management, the reason given by credit card issuers to hike rates, was unjustified. He validated his argument stating that risk management was not an appropriate reason for credit card issuers to hike rates when the consumer under debt paid regular monthly payments. Other House members including Alan Grayson and Gary Peters equally reprimanded the greediness of the credit card issuers.In conclusion, the government wants to ban the unfair practices of the credit card issuers and relieve the consumers as early as possible. If you have any thoughts on whether passing this bill would influence the business of the credit card issuers, please feel free to share it.Thread is Open for Discussion
Posted on
November 17, 2009
at
1:01 am
the government wants to ban the unfair practices of the credit card issuers and relieve the consumers as early as possible.I have a few questions on this topic:1. What exactly are "unfair practices?"2. What are the steps that the government will take in order to implement this Act?3. What is the private sector's stand on this bill?
Posted on
November 18, 2009
at
1:31 am
I can only assume that "unfair practices" pertain to unfair collection practices and slapping very high interest rates. Of course we need valid proof on that.
Posted on
November 19, 2009
at
2:31 am
As Karess mentioned the credit card issuers follow many unfair practices like to hike interest rates, increase card fees, decreasing credit limit without proper intimation, etc. This bill help consumers since it has defined the procedure to impose above mentioned practices.For implementation of the act it will be come in Action in partial manner one part in Feb. 2010 & another one Aug. 2010.Clearly with facts mentioned in above article will be affecting profit margins of the card issuers so they are quite unhappy with the government's decision but surely it will benefit to the card holders.
Posted on
December 8, 2009
at
10:28 pm
The law is called
Credit Card Accountability, Responsibility and Disclosure Act and it states that:-The credit card company can only increase the interest rate if the consumer's payment is 60 days late-Unless the consumer has asked for an over-limit fee, the creditors can't charge the consumer for it. Also, banks may not charge late fees if they were also late in crediting a payment.-Credit card companies may not market to people under the age of 21, without parental permission, or verification of their ability to pay.-Credit card companies must give the consumers 45 days before they can up the interest rates.-The consumer's payment must first be applied to the highest interest rate balance.
Posted on
December 8, 2009
at
10:29 pm
When these laws are violated, where can the consumer file a complaint?
Posted on
December 8, 2009
at
10:33 pm
I was going to say FTC Bureau of Consumer Protection or The State Attorney General but ... aren't they just for collection agencies?Where can the consumer file a complaint for creditors?
Posted on
December 9, 2009
at
10:15 pm
@ All ....Thanks fr the useful info.
