Charlie and Annie’s Daily Poll: Do you think the new credit card law will sufficiently protect consumers or should it have placed even more restrictions on the banks that issue them?
A law goes into effect today that puts new restrictions on credit card issuers and requires them to offer more transparency to their cardholders. The law is being applauded by many consumer protection groups, but others point out that it is far from perfect.
One particular aspect of the new reporting requirements could cause shock and depression among customers. Going forward, monthly statements will contain information reporting how long it will take to pay off the balance if the customer pays only the monthly minimum. Depending on the size of the balance, the payments could go on for decades.
The law offers some protection against arbitrary rate changes. Unfortunately, there are fewer cardholders now to benefit from the new rules.
The banks took advantage of a nine month gap between when the law was passed and when it went into effect to “protect” themselves. They raised rates, lowered credit limits, instituted new fees and closed many accounts.
Experts say that the new rules will also make credit cards much harder to get in the future and even with the new law in effect, credit card issuers will still be able to charge interest rates that would make a loan shark blush!
Annie: This law should offer some protection to consumers, but it seems that a credit card will still be a potentially very dangerous thing!
Charlie: That’s because Bankers are just thieves that wear a suit and tie!
Annie: To be fair, the people who have credit cards should know the terms and use them responsibly.
Charlie: That’s easy to say, but that little piece of plastic seems so harmless when that latest impulse buy is calling your name!
Annie: Well, it appears that going forward only the people that have the best credit ratings will have them anyway.
Charlie: It’s like that old saying goes, “A bank is more than willing to give you money, if you DON’T NEED IT!”
Annie: You really don’t like bankers, do you?
Charlie: I like them only slightly better than lawyers and politicians!
Annie: Oh, politicians and lawyers are at the “bottom of the barrel” then?
Charlie: No.
Annie: Who’s worse?
Charlie: VETERINARIANS!
With the utterance of the “V” word, both Annie and Charlie disappeared under a bed for several hours.
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Related Reading: Credit Card Law
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Answer to the previous Kitty Quiz: Seven
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