March 15, 2010
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News: New CC Regs -- Where do we go from here?
This is the summary of a slew of articles beginning with the article entitled: "New CC Regs - A more-level playing field". From here on out, credit card consumers will be tasked to look closer at the detailed cost of their credit cards. Undoubtedly, some bad-apple lenders will scheme up all kinds of new and increased fees. Stay tuned to this sight for tips to protect yourselves and pitfalls to watch out for. By now, most credit card holders have probably already received mail from their banks explaining changes to their accounts. Make sure to read these changes carefully.
Something new is that some credit card banks may require action just to keep the credit card in good standing. Inactive accounts are subjected to being closed without warning. Some banks, it is reported, go so far as to fine you. You will be charged a penalty (by any other name) just for not using your card enough. Unless you wish to close the account, make sure to use the card occasionally (once every six months has worked well for me but, there are no guaranties).
February 22 marks the second of three phases of the CCARDA (Credit Card Accountability, Responsibility and Disclosure Act)) regulation enforcement. When the next and final phase takes effect in August, credit card companies will be required to take into consideration the cardholder's credit rating when taking punitive measures. The new FICO guidelines are much more fair for all then the old ones but, as of yet, not all lending banks have switched over to use them. When they do, better days are to come.
More and more, the general feeling is that the worst is behind us. Perhaps, as things level out and Level 4 Defaults diminish to the point of allowing profitable quarterly reports from the credit card industry, things will ease up some. The 'bad-apples' will be forced to behave themselves and the rest of the industry cam progress unhindered from treating treating their customers well again. I;m already seeing the turnaround.