Credit card companies are frantically taking drastic actions in their attempt to “work around” the new credit card legislation that will restrict their ability to randomly raise interest rates and hit credit card consumers with surprise fees.  Already credit card consumers are beginning to scream foul. An article in the NJ featured a distraught credit card consumer whose monthly minimum …

Comment by Jacob Decker: Credit cards companies employ unfair …

Category: Credit Card Negotiation , Credit Counseling , Credit Crisis

Tags: Credit card Debt Money Management Personal Finance

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The new Credit Card Act which requires credit card companies to disclose how much a debtor needs to pay each month to pay off their balance clean within three years, and how long it would take them to be debt free if only minimum payments are made may not effectively reach debtors who bank online or pay their credit card bill through automatic electronic payment.  Debtors who bank online and forgo …

Category: Credit Card Negotiation , Credit Counseling , Credit Crisis , Economy , Managing Your Finances

Tags: Credit card Debt online banking

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After the passing of the Credit Card Act, which will restrict credit card companies’ ability to increase interest rates, amongst other things, the credit card industry took decisive action to soften the blow to their profits. Below are some of the changes you may see on your credit card in 2010:

An annual fee.  Since the Credit Card Act was passed, about 43 percent of new credit card offers contained annual fees, …

Category: Credit Card Negotiation , Credit Counseling , Credit Crisis , Economy

Tags: Credit card Credit Card Act fees repayment

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Making a late payment on your credit card has always carried a heavy penalty.  Most prime credit card issuers will dramatically increase a debtor’s interest rate for one missed payment.  The penalty interest rate is typically called the “default rate.”  The average default rate for credit card issuers is 27.88 percent, and more than half of credit card issuers have a default rate that is much higher.  But after the …

Category: Credit Card Negotiation , Credit Counseling

Tags: Credit Card Act default rate penalty

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In the throes of this recession, the average Americans is just piling on more credit card debt and finding it more difficult to find a way out.  According to a report released by TransUnion, as of October 2009, the national average for credit card debt $5,612 per person.  The average!  That’s scary knowing that the job situation is only getting worse with at least one company announcing job losses at least every week. So what can we do to get out of credit card debt? …

Category: Credit Card Negotiation , Credit and Bankruptcy

Tags: Chapter 7 Bankruptcy credit cards TransUnion

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Since the passage of the Credit Card Act, many credit card lenders have been dreaming up new ways of getting more money out your pockets.  One of the newest tricks on the block is the infamous “inactivity fee.”  Inactivity fees were at one point commonplace for credit cards; but eventually fell out of fashion.  But at least with some credit cards, the inactivity fee could make it comeback.   How does it work? …

Category: Credit Card Negotiation , Economy , Loans / Mortgages

Tags: Credit Card Act credit cards FICO Inactivity Fees

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… been living in seclusion these past couple of months you’ve probably heard about the new credit card legislation that will prohibit or limit several of credit card billing practices that are unfair or difficult for consumers to understand.  But let’s take a closer look at one of the most important changes you will see on your credit card next year:

The prohibition against “universal cross-default.” Before the passage of the Credit Cardholder’s Bill of Rights, credit card …

Category: Credit Card Negotiation , Credit Counseling

Tags: Credit card Personal Finance Universal default

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Every since the new legislation passed restricting credit card companies’ ability to raise interest rates, among other things, credit card companies have been using every dirty trick in the book to “get back” at borrowers and squeeze every cent out of them. According to an article in the Star-Telegram, some credit card borrowers are reporting that their minimum monthly payments are rising as much as 3 times what it was originally since …

Category: Credit Card Negotiation , Credit Crisis , Economy

Tags: Bank Credit card Financial services Interest rate JPMorgan Chase

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According to an article in the Star-Telegram, credit card lenders such as Bank of America, Chase and Discover have switched many credit card customers from fixed rate credit cards to variable rate credit cards ahead of the new credit card legislation that will limit the credit card industry’s ability to increase rates in the future. But in an effort to counteract the bad press received about their actions, several credit card companies …

Category: Credit Card Negotiation

Tags: Bank of America Credit card Interest rate JPMorgan Chase

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According to an article in the Dallas Morning News, credit card companies are already backing down from marketing to youth under 21 years old as the new Credit Card Act is set to become law in Spring 2010.   The Credit Card Act will prohibit credit card companies from lending to anyone under 21 years old unless he/she has a co-signer or proof of their ability to make payments on the loan.

The article said:

“…unsolicited card offers will …

Category: Credit Card Negotiation , Student Loans

Tags: Credit card Students Texas Law

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According to an article in the Star-Telegram, banks that are losing profits because of the new credit card legislation are now looking to debit cards and bank accounts to make up the difference.  The recently passed credit card legislation requires that banks give customers a choice on whether they want to opt into over-draft programs that can be costly.

The article said:

“That law only applies to credit cards, but lawmakers are now shifting their sights to debit cards. Last week, …

Category: Credit Card Negotiation , Economy

Tags: Bank of America Christopher Dodd Credit card Debit card Overdraft

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… has become a common American mantra over the past few decades as Americans rack up more and more credit card debt.  Now, according to an article at CNNMoney.com, consumers are starting to pay their mounting medical bills with plastic as well.  Consumer advocates say this is a dangerous trend, but experts believe that lenders are going to cash in on this lucrative opportunity by offering specialized “medical” credit cards.

“Out-of-pocket health care spending was already increasing …

Category: Credit Card Negotiation , Credit and Bankruptcy , Economy

Tags: Credit card Personal Finance