Earlier this week we reported on the new credit card regulations passed by the Senate that could be signed in to law as early as Memorial Day. This is good news for consumers tired of seeing their rates jacked for no reason and with no notice.
Many banks and credit card companies cried and complained, saying they needed to be able to change rates at will to stay profitable. Abusing your customers is no way to make money, and it seems Mark Gimein over at The Big Money agrees.
He's got a nice read today about why credit companies should take better care of their customers.
For a single bank to raise rates to a sky-high level is a dangerous strategy. When many banks adopt it, however, it gets much worse. Customers who see the rates on all of their credit cards rise become much less able to pay any of them.
We see it all the time: A temporary financial setback can be severely compounded by fees and fines.
Fortunately, the credit companies will have to change their ways.
And for anyone facing the fees and fines, there are other debt relief options available, such as filing bankruptcy.
Tags: credit, credit card debt
This entry was posted on Thursday, May 21st, 2009 at 8:36 am and is filed under Your Credit Score. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.