New Credit Card Rules Start and banks try to circumvent it!

We should all know by now that just this past August 22nd, the new rules created by our government and signed into law by the president started but not without some resistance by the credit card companies or banks. The new law was designed to protect the consumer from abusive practices of all of the credit card companies that over charged us all in penalties and other fees in the recent past. One part of the new law says "Your credit card company cannot charge you a fee of more than $25" for late fees but there are some exceptions in the new law that the credit card companies are taking full advantage of. One such condition is that if "one of your last six payments was late, in which case your fee may be up to $35; or your credit card company can show that the costs it incurs as a result of any late payments justify a higher fee." Some credit card companies are stepping up by one month further then the new law permits of punishment (7, not allowed in law) like your Kohl's store credit card owned and operated by the Chase Banking system. There is also another protection against inactivity fees and or punishments that I'm sure these card companies will not follow. They also can not charge you for over-drafting (past credit limit) your account more then 1 time as opposed to several times that many have done in the recent past (Chase Bank & others). The rate increases (or APR) are another area that has been changed by the new law where if any changes are to be imposed on the card holder, they must be informed 45 days before such increases take place and they can not be a monthly changed or review for changes but only allowed every six months. They must also explain why the increase of your APR was justified, a weak spot for most banks. These rules are being implement by the Credit Card Accountability, Responsibility, and Disclosure Act (the Credit Card Act) and hopefully monitored by the Federal government agencies responsible for credit card and bank actions against consumers. Some of the other changes are expected to take effect on or after February 22, 2011.

These credit card companies and banks do not like these new changes at all and are doing everything they can to bypass the new rules or even out right ignore them hoping the consumer and the Federal government turns a blind eye as they have done in the past. Many of the readers will think that these changes will raise rates for those people that are doing the right thing with their debts and paying them off on time in a responsible manner but I must disagree. The credit card companies abuse the least powerful consumers who have little or no knowledge as to their rights like the poor or middle class and who pay on time even with their pitiful and limited or low incomes (the vast majority). So now your $5 coffee fixes in the mornings that could exceed your credit limit purchase before work should not cost you an extra $100 or more in fees ($35+ x 3, Chase) like before. I believe the new laws are only as good as enforcement of them. Should the consumers be abused (despite the new laws), they need to know they can count on protection when eventually the credit card companies (and banks) decide to step over the line of the current laws. We will have to wait and see. More information can be found at: http://www.federalreserve.gov/consumerinfo/ or at http://www.federalreserve.gov/creditcard/. If you feel you are being abused, REPORT IT immediately to all the proper government agencies and also make it publicly known via blogs or tweet it! Shine a light on abuse today and always.