Credit Card Bill Ineffective?

Lawmakers and consumers across the country cheered the adoption of the Credit Cardholders Bill of Rights and other credit card regulations that would seek to end unfair practices on the part of credit card companies. However, several concerned cardholders have now raised the concern that the bill has only forced credit card companies to extract money from customers in trickier ways.

For example, the credit regulations prevent credit card companies from charging a fee if you go over your credit limit. However, credit card companies can still increase interest rates on transactions with a penalty rate due to a late payment, and they can also increase the fee imposed on late payments as well.

Another tactic that credit card companies have always been able to utilize involves closing card accounts for unspecified reasons, but many cardholders are worried that their accounts may close just so that the credit card company does not have to follow federal limitations. The rest remains to be seen when credit card companies must begin following the new federal regulations this week.

Credit Cards (Image: Flickr)