New Credit Card Laws
The new credit card laws will be coming into effect in 2010 and I think they cannot get here soon enough. I really hope that as I write below that some more class action suits result as well and get back to where banks serve their customers and you can bring your change in and they don’t charge you half to take the money and stick it in your saving account.
• Payments will be applied to those charges subject to the highest interest rates first. This was a horrible way of doing it and a great profit maker for the credit card companies expect that those checks in your bill will stop appearing as the
• Eliminating “Two Cycle Billing” — a real cheap shot even after you have paid they charge you more interest.
• Mandating Reasonable Times to Pay One of their favorite tricks is they sell the account to a new company and they they start moving the payment date and it jumps from say the 28 to the 22 of the month to try to trip you up.
• Universal Default — if anything goes bad they all go bad at the same time according to the banks so they all raise their rate so there is no place to hide.
• Making the Over the Limit Fees Fairer so a $10 over limit should not incur a $39 fee.
• Longer notice periods before changes to your account terms
I got caught up in some of these really bad practices where you are hours late and they hit you with the fees which I called them up and they deducted them but they don't tell you two times and they are raising your rate.
I like a lot of small business men was using my credit cards as a way to grow my business, and because of what happened I needed to do something drastic to get out from underneath and for me that was to sell a business that was growing in order to pay of the credit cards.
I was 28K in the hole when they took me from 7.9 to 29.99% , then they did something really shifty, they were reporting to the 3 credit reporting bureaus that my limit was 10K and on my bills they were saying that I had 32K worth of limit, and they were allowing me to continue charging. So what was happening was that I was late twice less than 2 days and they jacked me and because they were reporting that I had 10K limit they really caused my FICO score to drop.
Why is the FICO significant?
If my Fico score had not dropped from over 700 to close to 500 I probably could have gotten new cards and received no interest balance transfers for 6 to 15 months and a lower rate once they revert to the regular rate after the promotional rate was up.
I wrote 3 letters to them to complain on the reporting the 10K but yet my limit was 32K I also wrote to the reporting companies and said hey here is my bill it shows what the limit is and they refused to change it and said that the credit card company needed to change it, so I called the credit card company back up and said I wonder how many others people you are doing the same thing on? I bet there are enough people to bring a class action suit!
At this time the CCF Class action was in court for the foreign exchange rate over charging and market manipulation and they didn’t want to hear class action, so they put me through to a new person who cancelled the old account and did a new account with a lower rate and gave me 6 months interest free.
I write all this as I think that if there were others like my self that were treated this way that there damages and that the practices were unfair if not unlawful and it would be great if they took them to town again like on the CCF Settlement and got them to make good on their strong arm tactics and hey if a few of these banks fail so be it!.
Let’s hear your story! All posts are printed that are in reasonable good taste basically anything that you can say after 10 PM on TV.
• Payments will be applied to those charges subject to the highest interest rates first. This was a horrible way of doing it and a great profit maker for the credit card companies expect that those checks in your bill will stop appearing as the
• Eliminating “Two Cycle Billing” — a real cheap shot even after you have paid they charge you more interest.
• Mandating Reasonable Times to Pay One of their favorite tricks is they sell the account to a new company and they they start moving the payment date and it jumps from say the 28 to the 22 of the month to try to trip you up.
• Universal Default — if anything goes bad they all go bad at the same time according to the banks so they all raise their rate so there is no place to hide.
• Making the Over the Limit Fees Fairer so a $10 over limit should not incur a $39 fee.
• Longer notice periods before changes to your account terms
I got caught up in some of these really bad practices where you are hours late and they hit you with the fees which I called them up and they deducted them but they don't tell you two times and they are raising your rate.
I like a lot of small business men was using my credit cards as a way to grow my business, and because of what happened I needed to do something drastic to get out from underneath and for me that was to sell a business that was growing in order to pay of the credit cards.
I was 28K in the hole when they took me from 7.9 to 29.99% , then they did something really shifty, they were reporting to the 3 credit reporting bureaus that my limit was 10K and on my bills they were saying that I had 32K worth of limit, and they were allowing me to continue charging. So what was happening was that I was late twice less than 2 days and they jacked me and because they were reporting that I had 10K limit they really caused my FICO score to drop.
Why is the FICO significant?
If my Fico score had not dropped from over 700 to close to 500 I probably could have gotten new cards and received no interest balance transfers for 6 to 15 months and a lower rate once they revert to the regular rate after the promotional rate was up.
I wrote 3 letters to them to complain on the reporting the 10K but yet my limit was 32K I also wrote to the reporting companies and said hey here is my bill it shows what the limit is and they refused to change it and said that the credit card company needed to change it, so I called the credit card company back up and said I wonder how many others people you are doing the same thing on? I bet there are enough people to bring a class action suit!
At this time the CCF Class action was in court for the foreign exchange rate over charging and market manipulation and they didn’t want to hear class action, so they put me through to a new person who cancelled the old account and did a new account with a lower rate and gave me 6 months interest free.
I write all this as I think that if there were others like my self that were treated this way that there damages and that the practices were unfair if not unlawful and it would be great if they took them to town again like on the CCF Settlement and got them to make good on their strong arm tactics and hey if a few of these banks fail so be it!.
Let’s hear your story! All posts are printed that are in reasonable good taste basically anything that you can say after 10 PM on TV.
posted by Chuck at
7:18 AM
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