Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009

Discussion in 'Politics, Religion, Social Issues' started by Cleverboy, Aug 20, 2009.

  1. Cleverboy macrumors 65816

    Cleverboy

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    #1

    Your Credit Card Bill of Rights Kicks In Today
    http://www.whitehouse.gov/blog/Your-Credit-Card-Bill-of-Rights-Kicks-In-Today/

    Credit CARD Act Consumer ALERT: Be prepared for the next six months
    http://www.examiner.com/x-4836-SF-P...mer-ALERT-Be-prepared-for-the-next-six-months

    A comprehensive guide to the Credit CARD Act of 2009
    http://www.creditcards.com/credit-card-news/credit-card-law-interactive-1282.php

    So, I suppose by February, there should be a new sense of what to expect from your credit card companies. Two big issues to me were: 1.) Only being able to pay lower interest charges first 2.) Arbitrary, retroactive rate hikes on existing balances. I guess I'm still trying to get clarity on how all this comes together, so I have some reading ahead of me.

    ~ CB
     
  2. iGary Guest

    iGary

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    #2
    I couldn't find it in the links above, but does anyone know if this bill gets rid of universal default?
     
  3. Cleverboy thread starter macrumors 65816

    Cleverboy

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    #3
    I believe that BANNING "universal default" (in the bill) will be part of the protections going into effect in February (the rate height restrictions, etc).

    http://www.whitehouse.gov/the_press...orms-to-Protect-American-Credit-Card-Holders/

    ~ CB
     
  4. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #4
    Does anyone know if they banned them from advertising at colleges/high schools? I found that pretty disgusting that the colleges allowed that when they are publicly funded.

    Having dealt with the credit card companies they are definitely shady as hell, I remember one time they switched my due date without notice and then jacked my rate to 25% when I was late. Luckily I had a balance transfer, but if I hadn't that would have been a **** snowball.
     
  5. Macaddicttt macrumors 6502a

    Macaddicttt

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    #5
    Wait, I'm confused. Anecdotes aren't legitimate to condemn an entire industry, except when it's your personal anecdote? :rolleyes:
     
  6. kavika411 macrumors 6502a

    kavika411

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    #6
    I believe some sort of 'disclosure' law will pass regarding credit cards in the next year. I generally don't like government intervention, even legislation that simply forces information to be offered to the consumer. That said, I've come to really appreciate the legislation that forced food manufacturers to give info on calories and such on each and every product. I hope that some sort of credit card disclosure information passes that likewise breaks down information concerning rates, time periods, etc. into a very simple chart for the average - or even below average consumer - to understand.
     
  7. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #7
    I don't remember advocating a government ran credit card company. :confused: I think insurance companies are shady as hell too, and I don't have any problem believing stories like what lee had with his insurance company.

    In fact I have already stated I don't give a crap about a public option if its deficit neutral, I just don't happen to believe Obama when he says it will be.

    Ever since the government backstopped most of these companies I could give a **** less what happens to them as far as government regulations. Most of them shouldn't even be in business right now. You can't choose government intervention only when its convenient, either you are playing ball or you aren't.
     
  8. Cleverboy thread starter macrumors 65816

    Cleverboy

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    #8
    This is the law. It has passed. It's just going into effect in parts. Credit card companies are now required to be more transparent about what consumers are in for.

    The bill, as I understand it, will come in two parts. This is the first part, and the next part will go into effect in February. Consumer protections are part of the task of having a healthy market. Simply assuming consumers will gravitate toward the "best" company isn't enough. Right now, Massachusetts is trying to track down and deal with "Pay Day" lenders, but as many are out of state, there's only so much they can do. "Predatory lending" isn't about simply stupid consumers getting into unadvisable contracts. It's about companies "gaming the system" to create unrealistic arrangements with people that did not understand the full details.

    Personally, I think the legislation is pretty much a consumer/market win all around. Sometimes, if "raising rates" on existing balances is an option... it helps banks secure immediate "profit" at the cost of long-term returns. Better regulation for the credit card industry will mean banks no longer HAVE these destructive options, and can focus on a more transparent, healthy, and reliable consumer relationship.

    That's my feeling.

    ~ CB
     
  9. kavika411 macrumors 6502a

    kavika411

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    #9
    Apologies. Didn't realize it had passed.
     
  10. Shivetya macrumors 65816

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    Jan 16, 2008
    #10
    The big benefits are...

    Bills must be mailed out twenty one days before they are due.

    Changes require forty five day notification.


    The big negatives were

    People saw their rates jacked right before the final pieces went into place

    Less people will get credit, of course the good side is many didn't deserve it before.
     
  11. stevegmu macrumors regular

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    #11
    Somehow I think this will cost me $. I imagine the era of free credit cards will be over soon.
     

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