This link has been bookmarked by 1 people . It was first bookmarked on 02 Jul 2009, by Elena LaVictoire.
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02 Jul 09
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The bill, hailed by consumer advocates for tackling the powerful credit card industry, sets limits on sudden interest rate increases, capricious fees and abusive terms in fine print. But some unintended consequences could include higher annual fees and fewer bonus reward programs.
Some fear an end to the interest-free 30-day grace period for those who pay off their balances each month.
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George Scherer is exactly the type of customer banks say could be hurt by the Credit Card Accountability Responsibility and Disclosure Act of 2009. He has not missed a payment since opening his first credit account in 1969. Every month, he pays the balances on his two credit cards in full.
Credit card companies said the bill will force them to recoup lost profits from model customers like Scherer.
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But Edward Yingling, president and chief executive officer of the American Bankers Association, which opposed the legislation, said the new rules will limit the card companies’ ability to price according to risk.
“Less credit will be available generally, which means some consumers and small businesses will not be able to obtain credit cards at all, particularly younger people and start-up small businesses,” Yingling said
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