Despite the new credit card laws go into effect in February, credit card companies are putting the financial hurt on customers.
According to a report from Safe Credit Card Project:
- 99.7% of bank cards allowed card issuers to boost rates on outstanding balances.
- 90% of bank cards increased their penalty rates.
- Interest rates jumped an average of 20% from December 2008.
Citi Holdings sympathizes with customers, saying “We understand that customers don’t like price increases, especially in difficult economic times . . . these actions are necessary given the doubling of credit card losses across the industry from customers not paying back their loans and regulatory changes that eliminate repricing for that risk.”
Some companies, like Bank of America, will begin charging annual fees on accounts that previously did not have them. Citigroup will allegedly charge an annual fee for customers who do not spend a predesignated amount over the course of a year. Other banks may charge customers who do not use their cards for long periods of time.
The new credit card laws will benefit consumers. But be sure to keep close tabs on your credit cards as the changes take effect. Even if your credit card wants to charge an annual fee, there will always be cards that will not. Do your research and make sure you get the best credit card available.
Credit-card countdown: Higher rates abound | CBS MarketWatch
(photo: _ES)
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{ 1 comment… read it below or add one }
The credit cards surely made it hurt for me!
They closed all my personal accounts, kept my business accounts open which are conveniently unregulated by the CARD act. Then they raised my interest rate over 200% from 11 to 24 on my Chase business card and lowered my limit to just 100$ over the balance on my American Express. Months later they all refuse to give me personal credit cards because I have no revolving credit history… because they closed my accounts!!!! and business cards don’t count towards personal. Not only that American Express said they are rejecting me because of a negative debt/balance ratio. WHICH THEY CREATED.
I feel raped.
- Jeremy