Federal Reserve Forces New Rules on Credit Cards

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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Mogul of Pineapples
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Federal Reserve Forces New Rules on Credit Cards

Postby Mogul of Pineapples » Tue Dec 23, 2008 3:24 pm

They're on the blog:

credit card forum [the blog] » Blog Archive » Fed Passes New Credit Card Rules

Too bad they won't take effect until July 2010.
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Floppster
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Postby Floppster » Sat Dec 27, 2008 8:01 pm

Mogul of Pineapples wrote:They're on the blog:

credit card forum [the blog] » Blog Archive » Fed Passes New Credit Card Rules

Too bad they won't take effect until July 2010.


Well I am not certain if these changes will really go through. Nor do I know if they will dig us into a even bigger hole or help us out. Just make a general rule of how much available credit you can have and limit it down to max 15% of annual income. That would have saved a lot of trouble for all of us.
Intellectuals solve problems. Geniuses prevent them.
- Albert Einstein 1879-1955

sputNick
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Postby sputNick » Tue Dec 30, 2008 12:34 am

Why would these changes not go through? We need this. The payment grace periods and that kind of stuff doesn't bother me but creditors randomly changing the APR like I had happened to me does. There does need to be some kind of rules in place so they can't triple your rate at the drop of a hate for no reason.

magyar1045
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Postby magyar1045 » Tue Dec 30, 2008 8:13 am

The longer payment grace period will help folks who don't have home computers and/or don't believe in making online payments.

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Postby ilostmyjob » Wed Dec 31, 2008 3:47 pm

This is too late. :( Too many like me have already suffered and it doesn't do us much good for rules to go into effect all the way in the middle of 2010.

magyar1045
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Postby magyar1045 » Wed Dec 31, 2008 7:54 pm

It was the bankers moaning and groaning - insisting on the 18 month period to get their act/shit together, and those idiots at the Federal Reserve buckled.

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Postby indianamom » Sat Jan 03, 2009 12:28 pm

Oh my this was long overdue! I do hope this doesn't mean interest rates will go up and 0% balance transfers will disappear.

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Postby teddy19 » Sun Mar 15, 2009 2:25 pm

Great link to article. I think the best thing would be how they apply payments.

Right now a lot of people are being ripped off when the transfer a balance at a low 5% or lower rate then charged a higher rate on new purchases. By applying all the payment to the lowest rate is a real benefit to the bank because it could take a couple years to pay off say a $5000 balance transfer.

I had a client have a card where they were required to charge at least $75 per month to keep a 0% credit card. When she made her payment not a single penny went to the new purchase rate.

Multiple rates hurt more than help. If you ever transfer a balance NEVER use that card again. Shred it, put it in a block of ice, but never carry it in your wallet or purse.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Thu May 21, 2009 1:04 am

Well it looks like we got the reform we wanted.

Now let's see how it plays out.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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Postby teddy19 » Wed May 27, 2009 9:39 am

The rules should help people who are current on their bills. Most of the new rules won't help those that are behind. Remember we still owe over $960 Billion to credit card companies. This number will not be decreasing anytime soon, only increasing.

Banks primary job is to keep people in debt, not out of debt. When you look at a banks financial statement credit card balances are considered Assets, not Liabilities.

Your bank CDs and savings accounts are considered Liabilities to banks.

Reread this statement a couple times and you'll realize banks want us in debt.



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