It's Coming, But They're In No Big Hurry....
Regulators have finally voted to curb the discriminatory, unfair, and controversial practices of the credit card companies. That's the good news. The bad news is these practices will continue until the new regulations go into effect July 2010.
What will change?
Banks will be prohibited from raising your interest rate unless your payment is more than 30 days late.
They will no longer be able to maximize penalties based on the way they apply your payments.
No more double cycle billing, which charges interest on the previous months balance.
You'll have more time to make your payment, and your payment will be applied to the higher rate balance first.
And here's my favorite: No more universal default! This is the practice of increasing your interest rate if you missed a payment on a different card.
What's the downside?
Credit will be harder to get, due the higher expense to the credit card companies. And if you have a lower credit score, or a limited credit history, you can probably forget about it.
Low intro offers and zero percent transfers will likely be a thing of the past.
Expect higher rates across the board.
We carry about $976.3 billion in credit card debt in this country, and it is reported by the Federal Reserve that 4.9% of all credit card debt in the third quarter of this year was delinquent.
Prudential Professional REALTORS, ASP REALTOR, Woodland Park Real Estate, Woodland Park Colorado 80863 – Serving the City of Woodland Park, Teller County, Ute Pass, and Park County since 1997.
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