Federal Reserve Forces New Rules on Credit Cards

Mogul of Pineapples · 01:24 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.

Floppster · 06:01 PM

Quote:

Originally Posted by Mogul of Pineapples

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.

sputNick · 10:34 PM

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 · 06:13 AM

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

ilostmyjob · 01:47 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 · 05:54 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.

indianamom · 10:28 AM

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

teddy19 · 11:25 AM

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.

Mogul of Pineapples · 10:04 PM

Well it looks like we got the reform we wanted.

Now let's see how it plays out.

teddy19 · 06:39 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.

01:24 PM	#1
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 634	Federal Reserve Forces New Rules on Credit Cards 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. __________________ “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” -Warren Buffett Current Cards: American Express: Blue Cash, Simply Cash Bank of America: Visa Financial Rewards Platinum Plus Chase: Rewards Visa, Amazon Visa Discover: More Current Everyday Card: American Express Blue Cash

11:25 AM	#8
teddy19 Green Member Join Date: Mar 2009 Location: ohio Posts: 13	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. __________________ I want to help people become debt free. Debt is major cause for not reaching your financial goals. Go to my website to receive a FREE copy of my book "How to Beat Banks & Credit Cards At the Money Game". This is a great book to improve your finance knowledge today http://www.debtstrength.com

10:04 PM	#9
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 634	Well it looks like we got the reform we wanted. Now let's see how it plays out. __________________ “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” -Warren Buffett Current Cards: American Express: Blue Cash, Simply Cash Bank of America: Visa Financial Rewards Platinum Plus Chase: Rewards Visa, Amazon Visa Discover: More Current Everyday Card: American Express Blue Cash

06:39 AM	#10
teddy19 Green Member Join Date: Mar 2009 Location: ohio Posts: 13	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. __________________ I want to help people become debt free. Debt is major cause for not reaching your financial goals. Go to my website to receive a FREE copy of my book "How to Beat Banks & Credit Cards At the Money Game". This is a great book to improve your finance knowledge today http://www.debtstrength.com

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10:34 PM	#3
sputNick Gold Member Join Date: Oct 2008 Location: Midwest Posts: 41	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.

06:13 AM	#4
magyar1045 Centurion Member Join Date: May 2008 Location: California Posts: 162	The longer payment grace period will help folks who don't have home computers and/or don't believe in making online payments.

01:47 PM	#5
ilostmyjob Green Member Join Date: Oct 2008 Posts: 5	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.

05:54 PM	#6
magyar1045 Centurion Member Join Date: May 2008 Location: California Posts: 162	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.

10:28 AM	#7
indianamom Gold Member Join Date: Oct 2008 Location: Bloomington Posts: 35	Oh my this was long overdue! I do hope this doesn't mean interest rates will go up and 0% balance transfers will disappear.