1 edit | Unintended effects of new credit card law - watch out »news.morningstar.com/articlenet/···d=351101
The new credit card laws passed after the financial meltdown leading to the recent recession were SUPPOSED to reduce fees and prevent banks from sticking it to their customers.
Well the 1st part came true - fees are now regulated and many banks have dropped some of them completely. But the 2nd part won't happen. The banks are losing a lot of income based on penalties & fees. So they upped the interest rates on most of their cards(to the highest rates in 9 yrs).
Don't want to be the fool under the new law?
- Pay off your cards each month and don't buy what you can't pay for in 30 days.
- look out for a new banking scam(professional credit cards meant for businesses & professionals). The new law doesn't apply to them and the banks are pushing them on everyone. Isn't it interesting how the pols always leave loopholes in new laws. Be EXTRA careful if applying for a new card or when renewing a card when it expires. The banks may try and slip you in to a BUSINESS card without you noticing. Read ALL the fine print.
In any case read the above link. I mean it. Forewarned is forearmed and pleading ignorance of the new law when you get suckered will only be your own fault. |
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1 edit | said by fAcEtIOUs:Well the 1st part came true - fees are now regulated and many banks have dropped some of them completely. But the 2nd part won't happen. The banks are losing a lot of income based on penalties & fees. So they upped the interest rates on most of their cards(to the highest rates in 9 yrs). The whole credit card thing deserves to implode. The card companies jacked up fees to merchants to cover the cost of "rewards." They prohibit merchants from advertising a cash price (and adding a surcharge to credit-card purchases). Essentially causing the cost of "rewards" to be baked into the price everyone pays.
It's an unattractive scheme. It's kind of related to what you're talking about. People who couldn't handle credit subsidized the people who could. Similar to the way non-rewards customers subsidize rewards customers through inflated prices.
said by fAcEtIOUs:look out for a new banking scam(professional credit cards meant for businesses & professionals). Is that a "signature" rewards card?
My bank switched everyone from the standard gold card to a signature card without much explanation. Just that it would have better "rewards."
I haven't used the card since. Mainly because the fee charged to merchants is almost twice as much as the gold card I originally had. I refuse to play that game.
I wonder if it had something to do with the "business" class of card you're talking about.
Side note:
The recent finance reform gives the Federal Reserve authority to set merchant transaction fees for debit card purchases. It's going to be interesting to see if debit cards become the "new normal" for purchases. If so, the next interesting thing will be how consumer protections will be applied to them. (Credit card companies extended credit-like protections to debit card purchases. But, I don't think they'll do that if the fees they can charge are cut.). |
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 ameniteThe Soylent - It's PeoplePremium
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| reply to fAcEtIOUs
Along the lines of banks sticking it to consumers, I had the opportunity to use a Chase Manhattan ATM on Friday. On top of the $3.00 ATM surcharge (which my bank refunds to me anyway) I was presented with an advertisment in order to complete my transaction (the money had been dispensed, but the receipt I had asked for would not print). The screen required my input before completing the transaction.
So now I'm thinking I should send Chase an invoice for around $400 - that's $200/hour with the customary 2 hour minimum, and call it "research subject participation fee" or "advertising hostage charge" or something like that. If it were a splash screen that just went away that would be fine, but the fact that it makes me input to complete that transaction is bogus.
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Time is an abstract concept invented by carbon based life forms to monitor their constant decay.-Thunderclese |
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