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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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House set to pass new credit card bill
Here is a link to the whole story:
http://news.yahoo.com/s/ap/20090520/ap_on_go_co/us_congress_credit_cards
The Pew Health Group estimates that 82 percent of cards available to consumers include the stipulation that the cardholder's rate can increase to any amount indefinitely if the lender determines the person is too much of a credit risk. Consumer advocates say it is these types of practices that can bury consumers in debt if they make one mistake.
Under the new bill, a customer would have to be more than 60 days behind on a payment before seeing a rate increase on an existing balance. Even then, the lender would be required to restore the previous, lower rate after six months if the cardholder pays the minimum balance on time.
Consumers also would have to receive 45 days' notice and an explanation before their interest rate was increased.
Message edited 5/20/2009 8:23:31 AM.
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Posted 5/20/09 8:23 AM  |
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Dani922
Here's to new beginnings
Member since 10/07 7260 total posts
Name:
Danielle
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Re: House set to pass new credit card bill
My rate just increased on one of my cards. I'm ****** because I only ever paid that card late once & it was over 2 years ago! I always pay on time & pay more than the minimum  The notice said that the rate was increasing due to "poor economic times" 
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| Posted 5/20/09 8:28 AM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: House set to pass new credit card bill
They said on the news this morning that this will adversely affect those who pay on time becuase the companies will need to raise revenue and will likely do so by reinstituting fees, charging interest from the date of the purchase, and doing away with awards programs. If they do this, I am done with credit cards. 
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| Posted 5/20/09 8:38 AM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: House set to pass new credit card bill
Posted by seaside
They said on the news this morning that this will adversely affect those who pay on time becuase the companies will need to raise revenue and will likely do so by reinstituting fees, charging interest from the date of the purchase, and doing away with awards programs. If they do this, I am done with credit cards.
They didnt mention that in the article.
I am done with credit cards now anyway. I am paying off what we have left and told DH we are not using credit cards anymore unless one of us is dying and need it to survive  I am so sick of dealing with them...they are so slimy and try to rip you off no matter how good of a customer you are.
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| Posted 5/20/09 8:55 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: House set to pass new credit card bill
Posted by jellybean1420
Posted by seaside
They said on the news this morning that this will adversely affect those who pay on time becuase the companies will need to raise revenue and will likely do so by reinstituting fees, charging interest from the date of the purchase, and doing away with awards programs. If they do this, I am done with credit cards.
They didnt mention that in the article.
I am done with credit cards now anyway. I am paying off what we have left and told DH we are not using credit cards anymore unless one of us is dying and need it to survive I am so sick of dealing with them...they are so slimy and try to rip you off no matter how good of a customer you are.
us too. Now only purchases that I need a back up for go on credit cards. Debit is my middle name
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| Posted 5/20/09 9:36 AM |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: House set to pass new credit card bill
yep at one point my goal is to live like my parents do, if you don't have the cash they you don't get it. I only have $200 on my cc but dh has about 5K because of his teeth he had to put on it. We are better off taking a loan out for his dental work paying it that way then using CC.
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| Posted 5/20/09 10:00 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: House set to pass new credit card bill
Sorry but I don't agree with this bill and I am totally against it.
It says right in the terms when you open a credit card account that the rate can vary anywhere from prime (plus a set percentage) to 29.99%. There are no surprises here.
The banks are in enough financial trouble as it is. Now Obama wants to take away one of their biggest avenues of PROFIT for the banks.
So what will be the result to this? More bailout money for the banks. In essence, I will be paying for other people to carry low interest rate balances.
Booooooooo Obama.
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| Posted 5/20/09 11:27 AM |
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annoyedTTCer
LIF Adult
Member since 4/09 3272 total posts
Name:
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Re: House set to pass new credit card bill
Net result is fewer Americans will be given access to credit cards which will harm them when they need to book a hotel room, flight or car rental.
Good customers can expect the return of annual fees and perks like miles and rebates.
Can't expect them to charge someone with 700 and 500 FICO scores the same rate, makes no sense.
Also, think of Americans who now might not be able to get a job because they can't get a credit card. You have to pass credit check at my job and you need to qualigy for a corporate card.
Fail those two tests and you are pretty much gone
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| Posted 5/20/09 11:42 AM |
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LoveyQ
Stalkers, get a life.
Member since 11/07 12820 total posts
Name:
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Re: House set to pass new credit card bill
Posted by seaside
They said on the news this morning that this will adversely affect those who pay on time becuase the companies will need to raise revenue and will likely do so by reinstituting fees, charging interest from the date of the purchase, and doing away with awards programs. If they do this, I am done with credit cards.
I heard the same thing and I am fuming about this! I completely understand that the economy is bad and lots of people have fallen on bad times and have missed payments, made late payments, etc. It could happen to me and my DH. But so far we have been great with paying more than our minimums and paying on time - it completely suckkkks that we'll now be paying interest from the day you charge something and will have to pay annual fees because we've been GOOD customers. Like they don't make enough off of me with all the interest I pay them.
DH and I are slowly paying down our debt and hope to be debt free one day. But things happen - our dog needed surgery last week and that was 3K that we didn't expect to be spending and had to charge. Things happen and I'm thankful we have our cc's for this reason. But it almost makes me wish I was freakin delinquent so we could see a benefit to this.
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| Posted 5/20/09 12:34 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: House set to pass new credit card bill
They are never going to start charging interest on the day of purchase. If they ever decided to do this, just "pre-pay" your credit card a few thousand or just pay them the same day you make the charge. They would probably get your payment before the charge "posts" so you wouldn't be charged interest and you can get your rewards. Which leads me to my next point...
They won't do away with rewards programs either. Rewards programs are one of the ways the banks get people to make charges. The more people charge, the more posssibility they have to make interest on people that carry a balance.
Some banks may tone down rewards programs, but I don't see a case where every bank out there will close their rewards program.
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| Posted 5/20/09 1:23 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: House set to pass new credit card bill
Posted by Blu-ize
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us too. Now only purchases that I need a back up for go on credit cards. Debit is my middle name
so done with credit cards- even Amex
I will never use a credit card again
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| Posted 5/20/09 3:31 PM |
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lucyloo
nope
Member since 1/06 9758 total posts
Name:
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Re: House set to pass new credit card bill
Posted by seaside
They said on the news this morning that this will adversely affect those who pay on time becuase the companies will need to raise revenue and will likely do so by reinstituting fees, charging interest from the date of the purchase, and doing away with awards programs. If they do this, I am done with credit cards.
Same here.... I never carry a balance and I charge EVERYTHING because I get cash back.
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| Posted 5/20/09 4:00 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: House set to pass new credit card bill
Posted by Beth
so done with credit cards- even Amex
I will never use a credit card again
Us too. We stopped using them last year. I used to love my Amex to...it's just too much hassle to deal with cc's and the companies are just such sleeze balls. Debit and cash all the way!!!!
Message edited 5/20/2009 4:37:54 PM.
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| Posted 5/20/09 4:36 PM |
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wannabemom
look who's freshly baked!
Member since 12/07 7364 total posts
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aka marriedinportjeff
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Re: House set to pass new credit card bill
Am I the only person who yearns for a return of the days when a credit card's terms were pretty much never altered unless you defaulted?
I recall the early 90's.... sure, most cards had annual fees, but they wouldn't be sticking you with tons of odd charges, and changing terms for no reason.
The big difference back then was they wouldn't give credit cards to anything with a pulse. Also, credit limits were much lower... much more in tune with a person's income. those are the real problems. I do not think retracting credit from people with bad track records will really hurt the economy. I think our economy was hurt by extending all of this credit to that group of people in the first place. Sure it will hurt for a bit while we re-establish equilibrium. Frankly, those people should not have the opportunity to become 30k in debt.
I think this bill, in effect, will force the credit card companies to lend more prudently.
Message edited 5/20/2009 4:54:35 PM.
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| Posted 5/20/09 4:52 PM |
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evnme
My little lamb
Member since 8/05 12633 total posts
Name:
aka momma2b
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Re: House set to pass new credit card bill
i am pizzed b/c those of us who are never late w/ payments and who do not carry a balance will be punished for the sins of others!
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| Posted 5/20/09 5:12 PM |
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seaside
LIF Adult
Member since 6/08 3101 total posts
Name:
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Re: House set to pass new credit card bill
Posted by evnme
i am pizzed b/c those of us who are never late w/ payments and who do not carry a balance will be punished for the sins of others!
I know! DH and I have always lived within our means. We pay on time, in full, each month, and we reap the benefits. We essentially get the interest free loan of all the $ until the day we pay, no fees, tons of great free rewards for buying stuff we'd buy without them. I love credit cards, and will continue to use them until all that dom happens, and as soon as they charge me to use it, I'll stop.
Message edited 5/20/2009 5:55:56 PM.
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| Posted 5/20/09 5:51 PM |
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wannabemom
look who's freshly baked!
Member since 12/07 7364 total posts
Name:
aka marriedinportjeff
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Re: House set to pass new credit card bill
Posted by seaside
Posted by evnme
i am pizzed b/c those of us who are never late w/ payments and who do not carry a balance will be punished for the sins of others!
I know! DH and I have always lived within our means. We pay on time, in full, each month, and we reap the benefits. We essentially get the interest free loan of all the $ until the day we pay, no fees, tons of great free rewards for buying stuff we'd buy without them. I love credit cards, and will continue to use them until all that dom happens, and as soon as they charge me to use it, I'll stop.
I suspect that a much larger repercussion will be that companies will actually become selective again... and won't give credit to people who might go bankrupt or default. Right now, many of the the fees and interest rate hikes are going to pay for defaulting accts... Also, a good portion of the credit card profit was floating bad investments and loans in other banking sectors.
I'm like you... pay in full every month and charge everything... I've had a few credit cards get an interest hike... not like it really affects me, but it's annoying none the less. Also, they're instituting pay online fees... this is all BS. they should appreciate our business becuase we're reliable, and they get all of the vendor fees from my charges. I bet they wouldn't have to make so much off of my acct if they were responsible loaners and investors... only time will tell how this pans out.....
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| Posted 5/20/09 6:03 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: House set to pass new credit card bill
Posted by seaside
Posted by evnme
i am pizzed b/c those of us who are never late w/ payments and who do not carry a balance will be punished for the sins of others!
I know! DH and I have always lived within our means. We pay on time, in full, each month, and we reap the benefits. We essentially get the interest free loan of all the $ until the day we pay, no fees, tons of great free rewards for buying stuff we'd buy without them. I love credit cards, and will continue to use them until all that dom happens, and as soon as they charge me to use it, I'll stop.
I get rewards on my debit card- thru citi bank- it's the same thing- but no bill to pay
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| Posted 5/20/09 6:14 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: House set to pass new credit card bill
Posted by Beth
I get rewards on my debit card- thru citi bank- it's the same thing- but no bill to pay
The problem with that is the TYN rewards with Citibank using a debit card isn't nearly as lucrative as some other CC reward programs out there.
I'll give an example. If I am reading the TYN program right, hitting debit on the register gives you 1 point for every $3 you spend. That's really not that great.
Lets say for instance it takes 10,000 points to get a $100 gift card. You have to charge $30,000 worth of stuff to get that. And even then it's just a gift card and thats also assuming it's 10k points to $100 which isn't always the case.
I have a 2% cashback on EVERYTHING credit card with Bank Of America. No caps. No limits. To get $100 cash, at 2% cashback I only have to charge $5,000.
That's 6x better rewards, and it's cash.
That's why people who use CC are ****** over this stupid house bill. But since it's Obama and the Democrats running the asylum, I am not surprised.
Message edited 5/20/2009 6:25:11 PM.
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| Posted 5/20/09 6:19 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: House set to pass new credit card bill
Posted by ave1024
Posted by Beth
I get rewards on my debit card- thru citi bank- it's the same thing- but no bill to pay
The problem with that is the TYN rewards with Citibank using a debit card isn't nearly as lucrative as some other CC reward programs out there.
for me it is- I know you are really into credit cards
I really only used Amex for rewards-
10K points on either is $100 gift card
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| Posted 5/20/09 6:22 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: House set to pass new credit card bill
Posted by Beth
for me it is- I know you are really into credit cards
I really only used Amex for rewards-
10K points on either is $100 gift card
I understand what you are saying. I actually edited my post and posted an example.
You can most certainly do whatever works for you.
I just personally can't go the debit card route, mainly due to the lack of protection on fradulent charges.
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| Posted 5/20/09 6:27 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: House set to pass new credit card bill
I could have swore tyn was atleast point for everyone $1
But I will check again
I was strictly an amex girl until last week- so I haven't followed the tyn points too closely - but I will be now-
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| Posted 5/20/09 6:59 PM |
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annabegins
LIF Infant
Member since 2/08 59 total posts
Name:
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Re: House set to pass new credit card bill
I suspect that a much larger repercussion will be that companies will actually become selective again... and won't give credit to people who might go bankrupt or default. .
You're right. . . but this was all ready happening before the new proposed bill. I work in the industry and they are pulling back lines wherever they can.
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| Posted 5/20/09 8:13 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: House set to pass new credit card bill
Posted by Beth
I could have swore tyn was atleast point for everyone $1
But I will check again
I was strictly an amex girl until last week- so I haven't followed the tyn points too closely - but I will be now-
According to their website, it's 1 point per $3 spent if you hit the DEBIT button, and 1 point per $2 spent if you hit the CREDIT button.
So either way if you are using your debit card, ALWAYS select credit. A lot of times if the register knows it is a debit card, it will prompt for a pin. If I use my debit card I always hit CANCEL then select CREDIT. Then I sign.
Message edited 5/20/2009 10:25:07 PM.
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| Posted 5/20/09 10:24 PM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: House set to pass new credit card bill
I am another person who uses CCs for everything, and pays it off. I love the cash back, and the protection that I can't get with any other payment method. Plus, most car rental places want a CC to reserve the car. Some, but not all, will take a debit card.
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| Posted 5/21/09 8:45 AM |
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