Credit card changes coming soon to benefit consumers
December 19, 2008 by admin
The banking industry has caved into reforms on credit card regulations, rates and marketing techniques. In one of the most lobbied moves from consumer groups to try and ease up on predatory credit card lending practices. Consumers have been after the office Office of Thrift and Supervision to force banks to make changes into the perceived unfair lending practices.
Key changes that will go into effect in July of 2010 include the elimination of credit card companies ability to dictate payments being credited to balances with the lowest interest rate. Restrictions on a banks ability to retroactively raise interest rates or make changes to the card terms within the first year of issuance. All bills will need to be mailed 21 days prior to the due date. Eliminating a banks ability to charge retroactive interest will be one of the major changes with the new rules, and could end up eliminating upwards of 10 billion dollars in fees to the banking industry. There is an outside chance the government could look to introduce the consumers credit card bill of rights legislation when the new Congress is seated in 2009, which could further restrict the banking industry and credit card companies.