Thursday, April 23, 2009

Credit Card Clash?

Credit card relief could be coming, but it likely won't be enough

The battle over credit isn't just between large banks and large companies. The clashes behind the headlines are getting ugly. Credit card companies jacking up interest rates and fees, not always for a specific reason.

CBS News Online [ 2:12 ]

Many banks are starting to take aim at customers who are falling behind on payments by increasing fees and credit card rates, much to the chagrin of the White House. Kimberly Dozier reports.

BuzzFlash News Alert:

There is some help coming from Washington, but the major issue is whether that assistance will be in the form of a 6-foot rope to a drowning man 18 feet from shore.

The House Financial Services Committee is all set to approve legislation going after "unfair and deceptive" practices by credit card companies.

The bill, sponsored by Rep. Carolyn Maloney (D-NY), would according to CQ Politics, "restrict card companies from computing interest charges on balances from more than one billing cycle; prevent card issuers from suddenly raising rates without advance notice except in specific cases; and allow card companies to decide whether to apply payments in excess of the minimum to the highest interest rate debt, or apportion it equally between all of a cardholder's debts."

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