Sleazy credit card tactics under fire

[rpannier]

Some of the credit card industry's most egregious practices are finally getting the regulatory and congressional scrutiny they so richly deserve. Consumers this month have the opportunity to weigh in on Federal Reserve reforms and on legislation that could make credit cards a lot more fair.

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Among other things, the Fed proposes that:

"Fixed" should mean "fixed."
Issuers should be clear about what triggers rate increases.
Rates and fees should be clearly spelled out.
Consumers should get 45 days' notice of any changes, instead of 15.

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Actual legislation is likely to be introduced in the House later this month, an effort spearheaded by Carolyn Maloney, the New York Democrat who chairs the Financial Institutions Subcommittee and who this summer issued four "gold standard" principles she said should guide future reforms. The four principles are:

Credit card companies should issue cards on terms individuals can repay.

Issuers should clearly explain account features, terms and pricing at relevant times.

Issuers should provide customers notice and choice with respect to changes in terms.

Issuers should encourage responsible, successful credit use, especially among new credit entrants and customers with special needs.


link:
http://articles.moneycentral.msn.com/Banking/YourCreditRating/SleazyCreditCardTacticsUnderFire.aspx

[MadHound]

1. Individuals should simply give up credit cards altogether

It would solve a lot of problems afflicting our society. But sadly, too many people are indoctrinated with the consumerist mentality at a young age, and can never break out of it.

[Froward69]

3. I Agree.

Then they would not have to worry so much about bankruptcy.

[Cronus Protagonist]

2. Hmmmm nothing about jacking up rates on bullshit reasons?

What use is that? The most egregious practice right now is taking a 3.9% card up to 21% because a power or gas bill was paid late. That should be illegal, at the least,not just subject to a longer notice.