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Credit Card Companies hammer away at their customers before February 2010

Credit Card Companies are hammering away at their customers ahead of the implementation of The Credit Card Act of 2009.

In February 2010 the provisions of the Act are intended to ensure a more equitable and fair treatment of consumers.

In the interim however, credit card companies are hammering away at consumers, lowering credit limits, increasing interest rates and now increasing the minimum monthly payments on accounts.

According to CNNMoney.com, "for the second time this year Chase Bank has changed up the rules for how it calculates the minimum payment due for certain customers, increasing the rate from 2% of the outstanding balance to 5%. If you’re carrying a $5,000 balance that means your required minimum payment went from $100 in July to $250 this month."

This is clearly an "unfair practice" and complaints have been made to the Federal Trade Commission.

Posted by Stewart Penn - Los Angeles Condo Specialist on 08/17/2009 08:47 AM

Comments (12)

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Originally posted at: LA Connection Property Blog: Credit Card Companies hammer away at their customers before February 2010

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12 Comments on Credit Card Companies hammer away at their customers before February 2010

AUG

Morning Stewart, Considering how many people are living off credit cards this will put the hurts on many of them !

I am so glad this is a debt that I dont have. The credit card company's are going to force more people to have bad credit by doing this.

In an odd way they are doing us a favor by forcing users to make larger payments and pay these bad boys off sooner, I know..not everyone and make the larger payments which is why I said "in an odd way"

Hi Steward

The credit cards providers are putting a world of hurt on anyone with a balance. Here's the question was this the intent of of the bill?

Good luck and success.

Lou Ludwig

I guess they don't realize that those they are offending will still be consumers after 2010. It would be interesting to see how many they are forcing into bankruptcy by their horrific interest rate practices.

Unfortunately the "good intentions" of lawmakers failed to address what these predator companies would do during this "window of time" between now and February 2010.

I think we may see class-action lawsuites next year against the credit card companies.

It breaks my heart to see these pitiful little credit card companies hurt by the mean old politicians passing laws to protect consumers! LOL And I hope the credit card companies that are trying last minute shenanigans get hit with class action lawsuits and lose. It is time that big business and the banks learned to treat their customers better.

Yeah Stewart, my BofA credit card, you know the one, it used to be MBNA, they bought them out and now have a monopoly in the CC biz, informed me my interest rate will now be prime +. That means I'll never know what the hell they interest rate I'll be charged. Screw the little people eh? Since when did it become good business practice to screw your customers?

Terry - There's another interesting article online about this very point:

Cost of Credit Card Debt Soaring

It's interesting because I am seeing a lot of this around recently, raising interest rates and minimum payments, etc.. This weekend my wife got a letter from BofA telling her that since she has paid her card on time, that they are going to credit her next year's finance charges on her card up to $50 per month. This seems crazy to me and could be a scam. Has anyone else heard of this?

CF Escrow-this is happening all over. I have gotten letters that have said that "due to the economic climate" we are raising your rates. I have NEVER been late on a payment in over 20+ years. I am paying more because of the economy.

It's amazign that the administration can take over car companies, try and shove a health plan in just months but can't get this in place before the banks and credit card companies have a chance to hose the consumers.

If unemployment continues to rise and stay elevated for an extended period of time, these companies stand to lose an awful lot of money. They are doing everything they can right now to gather some nuts for the long winter.

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