Another bill designed to fail was the Credit Card Reform Act of last year. There was great hoopla and self-congratulatory posing done by Dems and Republicans after the bill passed. Turns out, the new regulations have done nothing to stop the credit card companies from taking crowbars to people that had the misfortune to accumulate large balances. Millions of families saw their interest rates jacked to 29.99% right after the reform bill past. It is sickening to know that so many families are being robbed into oblivion by these companies.
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December 11, 2009
Credit card companies don't intend to let little things like Federal Reserve Board rules and a new federal law get in the way of profits.
A new research report from the Center for Responsible Lending (CRL) claims the industry is "crafting new tricks and traps" to get around the new regs in order to continue hitting the nation's 80 million families with one or more credit cards with what CRL calls "arbitrary, unfair interest rate hikes and fees."
The study, "Dodging Reform: As Some Credit Card Abuses Are Outlawed, New Ones Proliferate," examined the practices of issuers that hold over 400 million credit card accounts and found at least eight specific industry practices that flourish despite federal efforts to halt them.
CRL says these practices make it all but impossible for the average person to determine the real cost of credit card debt, and that "the ability and eagerness of credit card issuers to exploit loopholes in the new federal rules underscores why lawmakers need to pass legislation to create the Consumer Financial Protection Agency, as proposed by the White House and now under consideration by Congress."
More at:
http://www.consumeraffairs.com/news04/2009/12/credit_card_abuse.html
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