Wednesday, May 20, 2009

Credit Card Law

This new credit card legislation is the best thing that the administration has passed. Every practice this bill banned should have been illegal decades ago.

For example: If they make the payment due on a day mail is not delivered they can no longer give you a penalty if the payment arrives one day late; some credit card companies were counting payments as late if they came in the afternoon mail on the correct date. They made the deadline the morning of the day the deadline so if it came in that afternoon it counted as late; They can no longer charge you for going over your credit limit without telling you that the payment will go over the limit and give you the option of doing something other than pay their ridiculously high fee; They can no longer raise the interest rate nearly as easily or quickly as they do now.

Some people are complaining because these abusive practices were a huge percentage of the revenue at credit card companies. This means someone else will be paying the bill, and some card holders who payed off their debt monthly will in fact get a worse deal on their card. But remember, credit cards will always have to stay a better deal than debit cards or no one will use them. So the effect of this will be more limited than they are trying to make it sound.

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