Credit Card Reform Act: Who Gets The Most Banks or The Consumer

By James Fox on September 2, 2010, 7:41 am

The Credit Card Reform Act has gone into effect. When you first review the new consumer protections that have been put into place, you have to admit the law seems really good. Consumers are given many new protections from lending practices that have made banks incredible profits in the past. While this may seem terrific, one has to wonder: What are the banks going to do now?

Will Banks Readily Give Up Billions In Profits?

The answer is no. There is not a single type of business that functions in the free world that is going to run without making a profit. It defeats the purpose of having a business. However, banks in recent years have taken making a profit to a new level with their exorbitant fees and unfair practices, only to end up being bailed out later by the government. Bank owners are not going to allow a drop in their profits, so consumers must be on alert for new fees and service costs.

What Should Consumers Watch For On Their Credit Card Statements?

The new consumer laws prohibit interest increases if the consumer makes a late payment only once. The new laws also prohibit late charges on payments made on the due date or the immediate day after. Consumers should watch for their due dates to change. Many banks are already changing the due dates on their cards from 28 to 15 days from mailing date. This change in when the payment is due will generate a lot of income, at least initially.

New laws prohibit penalty fees from exceeding the minimum monthly payment or $25 dollars, whichever is higher. Consumers should expect to see all their minimum payments increase.

 

There are several other new laws that affect what and how a credit issuing company can charge the consumer. It is important that all consumers, over the next year, carefully review their credit card statements looking for these changes so they can avoid any pitfalls.

Related posts:

1. Credit Card Reform Act: What It Does And Doesn’t Do
2. Credit Card Act Is Great – But How Will They Replace Their Losses
3. Companies Attempting To Come Up With New Credit Card Fees
4. Credit Card Reform Act: New Restrictions In Place – Consumer Wins
5. New Credit Card Fees: Will Credit Card Law Really Protect Consumers

One Response to “Credit Card Reform Act: Who Gets The Most Banks or The Consumer”

1. 4 Tips For Picking The Best Credit Cards - San Francisco Chronicle | Credit cards Card holders says:

   September 3, 2010 at 5:26 am

   [...] be very different, requiring time to carefully review each offer before choosing the best …Credit Card Reform Act: Who Gets The Most Banks or The ConsumerAmerica’s News Online (blog)Review of the week: Card that helps rebuild your credit [...]