Ten Months of Credit Card Grace, But Not for You
Millions of Americans breathed a sigh of relief last May, as President Obama signed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009. Even though the law will not go into effect until February 2010, it promises a turning point for American consumers and an end to the days of unfair rate hikes and hidden fees.
The problem is the ten-month heads-up period that the law granted to banks and credit card companies. A rational person might assume that issuing banks would begin immediately to comply with the law, but it appears that just the opposite is happening.
Readers are reporting in droves that their interest rates are being increased without limitations. Credit limits on credit card accounts and home equity lines of credit are being slashed, accounts with little or no activity are being closed and minimum monthly payments are being increased, all without rhyme or reason.
There is no doubt in my mind that credit card issuers are frantic about the provisions of the CARD Act and how it will limit their ability to do business. They’re getting their licks in now, while they can.