Beware of new Creditor Tactics in Response to the New Credit Card Legislation
As the new credit card legislation gets under way, there are many loopholes that are being discovered. This incessant game between the government, the creditors and their customers has hit an all-time high, it seems, with the government trying to reign in deceptive practices and creditors responding by finding other ways to charge customers or cut their benefits.
How can you make your way out of this mess, unscathed, you ask? By remaining aware of all the changes taking place with your creditors and your credit cards.
The following is just a few of the changes you will want to keep an eye on:
- Many creditors, in response to the recent legislation requiring them to inform their customers at least 45 days in advance of a change in their fixed interest rates, are now changing those fixed cards to “variable” cards. Doing so allows the creditors to change rates as desired because the legislation loophole doesn’t apply to variable-rate cards.
- Many lenders are now charging “inactivity” fees for customers who don’t use their cards frequently. Don’t be surprised to find a $19 inactivity fee if you haven’t used your card in more than a year.
- Many creditors have agreed to lower interest rates for customers, but many of those creditors have closed the customer’s account in response.
As with any other piece of legislation, there will be loopholes that simply can’t be avoided. However, if consumers make it a point to remain aware of their card’s terms and conditions and to ask questions and cancel their cards, if necessary, then many creditors will realize that they must impose realistic terms and conditions on their credit cards.
Related posts:
(No Ratings Yet)
Loading ...
