Negative Affects of the New Credit Card Legislation
With President Obama’s new Credit Card Bill, there are questions whether it will force consumers to be more responsible with their finances or if it will throw the economy further into the downward spira. The new credit card laws will:
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place limits on marketing for prospective cardholders under the age of 21.
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make it more difficult for credit card companies to increase interest rates when cardholders are late making payments.
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Prevent cardholders from charging more than the credit limit, unless a cardholder agrees to pay over-the-limit fees in advance.
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Better disclosure of credit card interest rates and repayments, using a standardized text.
The new laws will take place in February of 2010 – and is not thought to eliminate the current credit freeze America has been experiencing.
The potential for new problems for consumers from credit card companies is increased. The average credit card rate is likely to increase over the next six to twelve months. There are likely to be new fees that cardholders have never paid before, as credit card companies look for ways to recover from the loss of revenues the new credit card laws will impose for them.
