CHESSNOID

This bill has already passed the House and Senate and Obama will be signing it into law as soon as it hits his desk.  Will this make things easier on consumers?  To a certain degree it will slow down the practices banks already have executed against millions of cardholders by 45 to 60 days.  As far as helping the consumer, this legislation was simply a waste of time.  Like I said, cardholders now get an extra 45 to 60 days before the banks will do whatever they are doing now. That is the entire benefit of this piece of legislation for consumers; an extra 45 to 60 days before they increase your rate, your monthly payment, or cancel your card regardless of your FICO score and financial profile.  Other than that, nothing has changed. Nothing! 

The practices I am talking about are:

Yahoo AP:

The reforms are designed to protect cardholders from certain interest rate hikes, unfair fees, issuing, and billing practices, and generally require greater transparency and accountability from card issuers. While most consumer rights groups applaud the reforms as long overdue restrictions on deceptive and predatory practices, some serious points of concern were raised this week in the econo-blogosphere.

The new rules, which would go into effect in nine months, would prohibit credit card companies from giving cards to people under 21 unless they can prove they have the means to pay the debt or a parent or guardian co-signs for the card.

Under the bill, a customer would have to be more than 60 days behind on a payment before seeing a rate increase on an existing balance. Even then, the lender would be required to restore the previous, lower rate if the cardholder pays the minimum balance on time for six months.

Consumers also would have to receive 45 days’ notice and an explanation before their interest rates increased.

If you want to read the summary document Credit Cardholders’ Bill of Rights Act of 2009 just click on this link.  If you want to read the actual bill, then click on this link Text of S. 235: Credit Cardholders’ Bill of Rights Act of 2009.

Personally, I think Congress doesn’t really deal with the main issues that is hurting the economy.  The banks and/or credit card companies have already figured out the loopholes and will execute counter measures to take more money from the consumer.  Not too long ago, all these current high rates and fees added on would have been considered usury. The rates you see credit card companies charging now are the 20-40% loan shark rates from the old days.

Overall, this legislation is really quite uesless.  It is more smoke and mirrors from the government to make it look like they are helping the citizens.  The Obama administration is giving away tens of billions of taxpayer dollars at 0% to the banks who loan it back out to the same taxpayers with higher interest rates on home loans, car loans, personal loans, and credit cards.  Is this to be  the Obama administration’s credit card bailout that helps the American people? Yes, it is  more of the same with  more smoke and more mirrors.