Finally A Positive For Struggling Americans
Toward the end of May 2009, the Senate voted for a bill that will curb the banks dirty credit card tricks ; finally something that was voted in favor for the American people!
Some of the key highlights of the bill include: -
- Stop to unexpected unannounced interest rate hikes in existing account balances. The consumer will have to be at least 60 days behind in payments before the rate can be increased. The bank will be required to drop the rate back down once the consumer makes the required minimum payment on their account.
- Stop to unreasonable penalty fees and concocted junk fees.
- Stop to nonsensical late fees for payments that are NOT late.
- Stop to “in-your-face” and irresponsible lending to people under 21. Careful here, the parents or guardians are going to have to co-sign which is not necessarily a good thing. Young adults tend to have a mind of their own!
Not So Fast, But Beneficial
This is a most welcome action on the part of the Senate and will ultimately help the American people facing foreclosures, high credit card debt, and high unemployment. However, the banks have up to nine months to implement the various parts of the bill so the positive effects of this bill may not manifest themselves for most people for perhaps another year or so. Something is better than nothing.
Some benefits of the bill include: -
- The ability for consumers to pay credit card bills online or over the telephone without added transaction fees.
- The consumer would have to agree to going over their designated account limit before the bank can charge an over-limit fee. This is somewhat nebulous and I’m sure will be buried in the fine print somewhere that will allow the banks to charge it anyway.
- Consumers being notified by the banks about imminent over-limit fees and interest rate increases. This would allow consumers to take appropriate action before being hit by junk fees that could add to additional thousands of dollars for some.
Banks Crying About Not Being Able To Help… Right!
Of course, the bank are kicking and screaming about this bill. They’re defending the high interest rates because they are taking the risk in lending to people with questionable credit and ability to pay back the money that is lent to them. What a load of crap!
The banks are also complaining that this law will severely curtail lending to Americans when they need it the most. Well, it was the reckless bank lending practices that has gotten most Americans in trouble today. Less, stricter lending criteria I believe is a good thing. It will also help the American people get back to good saving habits and help them to know that not all money needs to be borrowed all the time!
One glaring omission from this bill is a cap on the interest rate that the banks can charge. Nevertheless, it’s a good start.
Hopefully, this will help your money situation. I know it will help mine, though I do not plan on reactivating my credit cards any time soon. This bill does not take the place of personal responsibility and good money habits on our part.
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