Credit Cards Do Need Increased Regulation

Its shameless how the credit card industry is operated today. Credit cards are a necessary evil, they help you get the credit score for bigger purchases like a car loan or a home. You can not easily rent a car or obtain a hotel room for a night or two without one either.

The banks are being greedy by stating that lower interest balances get paid first, when it will take forever to pay off the higher interest balances, thus increasing the time you have to pay off the higher interest.

Then, the banks want you to rack up the late fees and enter into default status where your interest rate gets raised 100 to 200 times to original interest rate by making it where your statements get sent weeks or days before the due date where you will end up missing a payment.

Federal regulations are being considered where bank statements will be required to be sent 21 days in advance and higher interest balances would be paid first.

I have total credit card limits that are way beyond my yearly income. I do not care that my credit card limit went from 1,500 to 11,000. I just want a fair interest rate and a reasonable credit limit that matches with my income. Bank of America was expecting me to go crazy at the local mall, and become their slave to pay off the debt.

If you are knowledgeable about how to use the rulemaking process of federal agencies you are encouraged to submit a public comment to help reform the credit card industry. One public commenter mentioned that if you make a payment on a Saturday, its considered paid on Monday. My father had a problem with his bank where he got a late fee for paying at the bank branch. It is good that the bank undid the late fee. However making the credit card industry user friendly would definitely boost confidence in the industry.

Yes, card issuers deserve their money. However, consumers deserve not to be condemned to a virtual debtor’s prison. We all need credit, but credit does need to be handled with care. If the banks want to issue us debt when we can not handle the debt, then the bankers should take the loss entirely.

Link: FRB: Rules proposed to prevent unfair practices in credit cards and overdraft services.

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