Comments on: Good News Creeps into Credit Card Increase Notices

By: J. Davis

J. Davis — Sun, 30 Aug 2009 00:10:30 +0000

Business regulation is going to affect some part of the business there gonna pass off the expense in one way or another it’s just the fact of life when your a huge credit card company sad but true.

By: Noelle

Noelle — Thu, 27 Aug 2009 15:22:42 +0000

For people who can’t handle using credit, then credit cards are not the right tool, cash is. Before credit cards became the way to go, clueless people still managed to spend more than they had. Credit cards are not in themselves “evil”, the companies spell out the terms – pay by this date or get a fee – but are very good at dinging people who don’t pay attention to the rules, or think it doesn’t apply to them. I have never paid any fee or charge on any credit card ever. And have had one since 1985. I play their game, follow their rules and every month get a 30 day loan without interest or/or fees. I used to be considered a “deadbeat” by the banks, as they didn’t make as much $$ off me, but now I am a golden egg – still pay my balance in full, but they aren’t losing money on me now. Have not had one credit line cut, one card canceled, interest rate increased – well that may have happened, but quite frankly it could be 1000% and it would not concern me.

By: Kathy R

Kathy R — Wed, 19 Aug 2009 17:59:20 +0000

Under the new law, credit-card issuers can’t charge over-limit fees unless a consumer agrees in advance to the fee. Somebody was thinking with this rule because it specifically states that banks can’t assume consumers agree to the fees — a borrower has to actually opt-in.

However, if a borrower doesn’t opt in, charges over the limit would be declined.

I suspect Amex ended their over-limit fees because 1) Their software system can’t currently support an opt-in program, 2) The administration cost would outweigh the benefit (sending out notices, updating accounts with consumer selection, modifying account settings as people change their minds, managing complaints for fees charged in error, etc.). 3) They suspect most people would opt out so by eliminating the fees they can still accept the over-limit charges, earning revenue from interest for these charges.

The rule about over-limit fees doesn’t go into effect until Feb 22, 2010, but a couple changes kick in tomorrow (Aug 20, 2009): 1) At least a 45-day notice for significant changes in terms, and 2) At least a 21-day grace period for payments. Two of my issuers have extended their grace period from 20 to 25 days (Chase and Amex).

Ironically, this last rule will increase revenue for banks — cardholders carrying a balance will pay additional days at the higher balance amount.

By: John P.

John P. — Fri, 14 Aug 2009 21:06:52 +0000

@shawn if the bank wants to give me their money for 30 days, why shouldn’t I take it? I like to keep my money in my pocket as long as possible. I have no problem working with the banks money, even if it is only for a short time.

By: Shawn

Shawn — Thu, 13 Aug 2009 20:18:06 +0000

@Kyralessa – because there is no reason to borrow the banks money if you have your own.
@Cory – I don’t used credit and I do just fine. I have no FICO score and I do quite well. I have a big house and several rental properties – all paid for. By the way, you absolutey can get a mortgage loan with no FICO score.
@Shawna – Dave Ramsey is RIGHT ON! I’ve been using his system for a while now. Keep your debt snowball rolling!!