Do you have a question about when the various provisions of the bill become law (the effective dates)? We've posted a quick summary of the various effective dates here, but most of the key provisions become effective February 22, 2010.

That's a few months earlier than the Federal Reserve rules finalized last fall, and the final bill contains some stronger protections as well. We wish the reforms were effective immediately, but that's a battle we did not win among the many we did win.

We know that you have questions. We've posted the full text of the bill here (pdf only). But you may not want to slog through hundreds of pages and then wonder if you understood it all.

So ask your questions. Ask us how the new reform will affect your personal card problems. We will do our best to tell you. Here are a couple questions we expect many of you to have, so we wanted to answer them first.

My rates just went up. Will the reforms give me my old deal back? For millions of you who recently got socked with rate increases and new fees, we can tell you right now that the bill is not retroactive. Unfortunately. But starting February 2010, your payments above the minimum, will be allocated to your highest interest balance first, rather than the lowest. So for those of you trying to pay down that now-too-expensive card, it may get easier next year.

The banks said these reforms would end rewards programs and grace periods. Does the bill do that? Emphatically, No. And it is unlikely that banks will do these things on their own. Right before the final vote, bank lobbyists tried to scare the public by saying that good customers who now benefit from rewards programs and grace periods would have to start paying more and getting less to make up for irresponsible card holders. Now that the bill has passed, we think it unlikely that any card company would thrive by further attacks on their best customers--the same customers who can always just go someplace else. Banks make a lot of money in transaction fees on the customers who charge a lot but do not carry a balance. That's why they set up attractive programs to garner that business. Those competitive dynamics have not changed with these reforms.

But we know you have lots of other questions. So please, ask your question below and we're ready to answer it.

This is a public forum, so don't post anything (like your card number) you don't want everyone on the Internet to see. Your question will be posted shortly after you ask it. We have experts standing by to answer as best we can based on what you tell us. We may not answer every single question. If several people's issues are similar we will try to provide one good answer, so as the comment string develops look and see if your question has been asked and answered.

comments (104)

Comments

1 Posted by dan walker at 05/26/09 11:13 AM

Is it true that the new credit card bill will allow credit card companies to charge interest from the day of the charge, even if you pay the balance in full every month? Thank you

2 Posted by Lauren Bowne at 05/26/09 11:34 AM

Hi Dan,
Card companies are currently not required by law to give people grace periods. They have always been allowed to charge interest from the day of the charge, if they want. The bill does not change this.

But as the card companies know, for people who pay off their balance in full each month, a credit card without a grace period is essentially useless. This is why almost all cards come with grace periods if the balance is paid in full.

There is very little chance that card companies will eliminate grace periods despite their public threats. If they do, these good customers will likely choose to use their debit cards instead of paying unnecessary interest to the card companies.

Though card companies do not make money off of interest payments from these consumers, they do make a great profit from the transaction or interchange fees each time the consumer uses the card. So it is in the companies' best interest to retain these consumers.

Thanks for your question,
Lauren Bowne

3 Posted by joe onorato at 05/26/09 12:50 PM

if you pay your credit card on time, even before due date, and....in error you wrote your check for one dollar less.....next month your interest fee is charged on the full original amount due, not for a dollar.

will that now change..... I doubt it.

4 Posted by Lauren Bowne at 05/26/09 02:34 PM

Actually Joe, you are in luck. The new law prohibits card companies from imposing a finance charge on any portion of a balance that was repaid within the current billing cycle.

So let's say last month you paid off your balance in full. But this month you paid off only $75 of your $100 balance. Under the new law, the card company can only charge you interest on the $25 you did not pay.

See the source: page 5, Sec. 102 of the CARD Act.
http://www.creditcardreform.org/pdf/credit-card-bill-2009.pdf

5 Posted by Marcus at 05/27/09 08:08 AM

The credit card companies and banks should BE MADE TO USE WORKERS FROM THIS COUNTRY!! I am sick of "trying to be told" NO from someone I can barely understand for one thing, and it angers me to know THESE people don't know us and THEY are making money off this and off us.

6 Posted by Michelle at 05/27/09 08:11 AM

Why is this recent, ridiculous "raising of rates" not considered "price gouging" during a financial disaster considered illegal?

7 Posted by Lawrence at 05/27/09 12:33 PM

I could not agree more with Michelle. My credit card company raised my rate today by over five percent after being a customer for over 25 years. I guess I can expect the rest of them to follow suit. I do not understand the nine month delay, I am sure that they had everything written up just waiting for the bill to be signed into law last week. I this what they (credit card companies)were warning us about?

8 Posted by Lauren Bowne at 05/27/09 03:43 PM

Michelle and Lawrence have very valid points. The fact that credit card companies are permitted to change rates and add fees whenever they want for any or no reason at all is precisely the problem that this bill will fix in the future.

Good consumers, who pay on time and are longtime cardholders, have shared their stories with Consumers Union for over a year now, telling us about how their interest rates have gone up suddenly and for no reason at all. Stories like these persuaded Congress to finally step in and pass a law that provides real protection. http://www.defendyourdollars.org/content_type/story/#credit-stories

But as you mention these protections do not go into effect until next February 22, 2010, despite great efforts to get this law implemented sooner. http://www.defendyourdollars.org/2009/02/congress_is_not_giving_up_on_c_1.html

In the end Congress decided to give the card companies nine months, which is a slight improvement from the Federal Reserve Board’s July 2010 implementation date.

But during this waiting period, you will have a chance to influence certain aspects of the law. Mainly, the Federal Reserve Board must issue regulations regarding the size of penalty fees. We all will have a chance to write to the Board telling them our stories about unfair penalty fees to ensure that they adopt a protective standard. Check back as we will have more information in the coming months.

9 Posted by Marie at 05/28/09 09:09 AM

All of my companies have raised my rates except for American Express. I assume they will before the law takes affect. I am just paying them off and never using them again.

10 Posted by Angela at 05/28/09 09:26 AM

Does this bill prevent huge increases in annual fees or will this be the result of the credit card companies not being able to collect an adequate profit from those who carry huge balances?

11 Posted by Andy Driscoll at 05/28/09 09:40 AM

I hope the President vetoes this bill forcing Congress back to the table to remove the non-germain provisions allowing loaded guns into national parks. Why didn't CU fight to keep that that provision out of this bill.

I'm as crazy with hatred for credit card companies as the next person, but this was an outrageous display of political cowardice by both houses of Congress who cannot seem to stand up to the NRA no matter where and when they confront it.

This bill should also go back for banning usury - the willy-nilly raising of interest rates to untold heights and the highway robbery of fee levies. Interest rate limmits should have been at the core of this legislation.

12 Posted by Patrick at 05/28/09 09:59 AM

There was much discussion about a provision that was tacked onto this bill that would allow licensed gun owners to carry loaded, concealed weapons in National Parks (or something to that effect). Does anyone know if that provision made it through to the final bill or if it was removed?

13 Posted by mike at 05/28/09 10:07 AM

This legislation going to more than likely cost me money. Right now my credit card has no annual fee for the card, and I have my credit card balance paid automatically every month. What's to prevent the banks from charging me an annual fee now? I feel I'm going to be penalized because some people are unable to handle their finances.

14 Posted by cathy at 05/28/09 10:14 AM

I'd like someone from C.U to address Marcus
's point. Why should a company that gets taxpayer bailout money not be forced to hire American workers? It's a small request given the $$ they've taken from us.They should at least have to hire us!

15 Posted by mark at 05/28/09 10:19 AM

Can someone please explain how this legislation will benefit me? I pay my bill in full each month. I have no annual fees or interest. I receive cash back from 1.5% - 5% on my transactions. I do not charge more than what I can afford and therefore am not subject to fees and interest rates resulting from making purchases that cannot be paid in the same month. Now annual fees may be imposed and loyalty programs reduced. I would appreciate articulating real benefits that I will see as a result of this legislation.

16 Posted by Jose at 05/28/09 10:21 AM

How will the new credit rules affect pawn shops? Will there rates be moderated?

17 Posted by lisa at 05/28/09 10:25 AM

The bill did not limit how high the rates can go.It did not limit late fees (of 35$).I under paid by $3.00 and my rate went up to 29.99%, even though I paid on time. The payment on line system does not allow for a minimum balance payment to be made on a specific day,to avoid late charges when the minimum payment changes from month to month.The date of payment should always be the same date,to help the consumer to stay on track by using automated online paymnets.

18 Posted by Jim at 05/28/09 10:29 AM

Since the credit card reform act, my interest rates have shot up over 6% and they have increased their penalties. This is what I get for paying on time! This credit reform act is all publicity. It hasn't nor will it help the consumer because the corporations will find other ways to screw us.

19 Posted by TREE at 05/28/09 10:32 AM

after all that work this is baloney
Bush had a program in place before he left to take effect in july of 2010
The credit card company is ripping us off now! The need was for now! Yet you chose to give obama credit for doing what? Making a bill effective 2010 of january? big deal
jan or july no diff
We need this to stop NOW!

20 Posted by Lauren Bowne at 05/28/09 10:35 AM

The bill does not put a limit on annual fees, but does require that the company give you 45 days notice before making any significant changes to your account. It is likely that an increase or addition of an annual fee will be considered a "significant change." (The Fed must issue regulations on this subject.)

Card companies may try to tack on annual fees but they will still be competing with each other for your business. With 45 days notice, you have time to call your card company and challenge the fee. You can shop around for another card that does not charge a fee. The bill ensures that you know the cost of the credit before incurring debt. This will give consumers accurate information so that they can adequately shop for the best deal.

21 Posted by SV at 05/28/09 10:37 AM

I have no doubts that in coming months all credit companies will start raising fees, rates, and will introduce annual fees. This will last for about a year, but then they will face consumer resentment, because credit card use will drop. At that point capitalism will take over and competition will make them go back to lower rates, rewards, and no-annual fees offers. Just do not hesitate to cancel your cards when they start their assault... We all can use debit cards for awhile.

22 Posted by santos at 05/28/09 10:40 AM

What's with the discrimination against adults under 21? I'm all for the restrictions of free gifts and marketing on college campuses. And I'm DEFINITELY in support of requiring companies to more adequately consider an individuals ability to repay their debts.

But, why should someone who is 20 be judged differently than someone who is 21? Shouldn't they,along with 30, 40, 50 and 90 year olds all have their ability to repay considered equally?

23 Posted by Lauren Bowne at 05/28/09 10:40 AM

The provision allowing concealed weapons in National Parks did make it into the law, though Consumers Union played no part in supporting this provision.

24 Posted by Carol at 05/28/09 10:43 AM

Unfortunately, too little too late. Most of us will be in bankruptcy by 2010. What is stopping this legislation from happening NOW???? In 2010, they will have figured out a way to get around it. During these financial times, credit card companies should have a freeze on rates imposed until 2010 at least.

25 Posted by Brett at 05/28/09 10:43 AM

The law should have taken affect immediately. I have already received notices from 2 CC companies stating that my interest rate will increase by 7-8% APR on Jan. 1, 2010. When I call to inquire further, they have stated that the increase is for all of their card holders.

The law still allows the companies to increase the rates before the bill takes affect and doesn't regulate what the APR is set at.

26 Posted by Sharon at 05/28/09 10:45 AM

There was a time when tactics, called "bait and switch" (getting someone to sign up for one fee and then later charging a higher one or arbitrarily and without warning changing the rules of the contract) and "loan sharking"(charging high interest rates)were illegal and criminal offenses in this country. It doesn't appear that those issues with the credit card companies are close to being eliminated, only softened. We have a long, long way to go before consumers are being fairly treated. With the way our system works (politically planting more NRA liberties inside a non-related bill?!)it might be easier to turn back time. This is way too little, too late.

27 Posted by David Drescher at 05/28/09 10:49 AM

Shred your credit cards, before you use them, if you will not be able to pay off a credit card in full. No legislation needed. Not every tool is right for every person

No legislation needed.

28 Posted by Lauren Bowne at 05/28/09 10:50 AM

In response to the comments about the international hiring practices of the credit card companies. Consumers Union does not take a position on the labor market and we try to remain focused on making products safer and better for consumers.

As such we would like to focus this discussion on how the credit card bill impacts consumers and answer questions about how your credit card account may be effected.

29 Posted by Margaret at 05/28/09 10:58 AM

Does this new law set a usury limit banks can charge? I have read about cases where customers are being charged as much as 30 percent interest which is loan sharking. Also, does the new law require that the banks mail the statement immediately? We are fortunate enough to be able to pay in full every month, but Bank of America has been playing the mail the statement late game. They claim they mail it the day after the statement period closes, but somehow it always takes 10 to 15 days to arrive. We do not have a mail problem so I have no doubt this is being done on purpose. I now mail our payment without waiting for their statement.

30 Posted by Frank at 05/28/09 10:59 AM

Did they fix my pet peeve?

I hate it when credit card bills are sent out with due dates on saturdays. They don't process the payment on the due date, and will charge for a late payment when they get around to posting it on Monday (or Tuesday).

Does the new law require them to actually assign a due date on a processing day, or if they put the due date on a non-processing day to make the effective due date the next business day?

Thanks!

31 Posted by jim wentz at 05/28/09 11:00 AM

By the time the procedure goes into effect the banks and CC companies will have already raped the consumer with fees and interest rates. So - lots of luck until February 2010.

32 Posted by Elias at 05/28/09 11:00 AM

Why didn't the Congress (32-60 votes) define "ursury rates"? Consumers asked for that. What happened? It used to be that they could not charge more than 10% or 11%. One of my cards can charge 29%!

Has "double billing" now been considered unlawful? Discover Card does it.

33 Posted by Lauren Bowne at 05/28/09 11:03 AM

Lisa,
You are right that the bill did not limit how high rates can go, but it does do the following:

-- Late fees (and other penalty fees) must be reasonable and proportional to the violation. As I mentioned previously, the Fed will be issuing regulations on what is “reasonable and proportional” and consumer will have a change to participate in this rulemaking. Check back later and will have more information on how to comment.

-- The card company will no longer be able to increase your interest rate and apply it to an existing balance, because you underpay by $3 (or any amount.) The only way they can raise your rate and apply it to an existing balance is if you fail to pay for 60 days.

-- And you are in luck with respect to payment due dates. The rule mandates that the due date shall be on the same day each month. This should fix your automated payment problem.

34 Posted by Kimber at 05/28/09 11:06 AM

I, like many of you, agree that the delay in this legislation to February of 2010 will only allow the banks that hold these credit cards plenty of time to raise their interest rates. Thank you, Senator Levin, for giving the banks advance notice that you plan to clamp down on their unfair practices. (a little bit of sarcasm). Senator Levin's office has been dutifully emailing me updates on the credit card reform ever since I emailed him complaining about my interest rates skyrocketing for no reason. I was more than a little bored with the bragging of "how hard he was working" toward CC reform, actually.

I have always paid my cards on time, more than the minimum if not the entire balance, yet now I am staring down 15-18% interest where I once had 6%.

And yet, I realize the truth that many of you have shared...if you don't carry a balance in the first place you don't have a thing to worry about. AMEN. Lesson learned. Credit cards banished.

BTW, what great news it was to hear that my previous business card account by Advanta went under...this after they tried to raise my interest rate from 10% to 37% just for the heck of it. I immediately transferred my balance to a 0% on another card and saved $120 per month in interest alone. Needless to say, I had an interesting conversation with the management of Advanta.

Best thing to do, visit Dave Ramsey and buy with CASH.

35 Posted by Tim- CU Grassroots Organizer at 05/28/09 11:08 AM

@Santos
It is CU's position that everyone should be underwritten when it comes to credit.
That being said as this next college summer and fall semesters start will be the last open season on college campuses for credit card companies so BEWARE. After February, if you are 21 and over when the law goes into effect DON'T co-sign for your friends.

36 Posted by Richard W. Knapp at 05/28/09 11:10 AM

To little to late. The CC Companies saw this coming and have already increased my rates. As soon as I shut them down then my asset ratio falls. Then they reduce my limit on a much used card and the debit ratio increases again. I have 3 kids in school and I need some credit. The cards are necessary for some people. I can't afford to "pay as you go". But I can pay off my credit and I have faithfully. But my rates just went up.
Where is the provision in this law for complaints?

37 Posted by Kurt at 05/28/09 11:14 AM

I understand now there will be no interest grace period for purchases made. Interest will accrue from the dated of purchase. Fortunely I have a card that guarantees me no annual fees for life. It will be sad to see rewards programs go away.

38 Posted by Zooks! at 05/28/09 11:19 AM

Do people exploit people? People do! Credit card companies bait and switch, loan shark, and generally commit usury. Credit card holders buy more than they can afford to pay either deliberately to defraud or out of weakness or desperation (due to other forms of exploitation?).

Do people kill people? Yes, and how! Now we can do it in National Parks with relative impunity compared to killing in areas where there may be more witnesses. But, look on the bright side. This will serve as a source of population control.

Of all the species on all the planets in all the galaxies in all the Universe, I have to end up this one!!

39 Posted by DW at 05/28/09 11:20 AM

I agree that delaying the effective date negated the good effects of the bill. Capital One increased my rate from 8.5% to 17.9% with no late payments on any item in my credit report ever! Only response will be to never use credit cards again.

40 Posted by Jim in Peoria at 05/28/09 11:25 AM

I'm glad to see that many of my fellow CU Take Action participants are as disappointed as I am with these results. I doubt that there is much to celebrate for most of CU's subscribers. The bill is a sham.

41 Posted by Larry at 05/28/09 11:26 AM

I can see no victory in this. You people have not helped the small business owner and the consumers that are prompt and dont shirk their responsibilities. You have made the Credit card company's level the playing field at the cost of those that are responsible. I lost my small business CC because of Advanta folding up, and know I cant find a company that is signing on new small business accounts. I'm screwed. You should have started a campaign to get those who shirk and walk away from their responsibilities to read the fine print and own up to their living beyond their means. with friends like you who needs enemies!

42 Posted by Lauren Bowne at 05/28/09 11:34 AM

DUE DATES

To answer your questions about due dates. The law requires that due dates be set for the same day each month. So no more confusion.

If the due date falls on a weekend of holiday, your payment will not be considered late if it arrives to the company on the next business day.

Also, the card companies must send your bill at least 21 days before the due date, so you will have sufficient time to pay.

43 Posted by Lauren Bowne at 05/28/09 11:35 AM

The bill does not eliminate grace periods. We do not anticipate that card companies will choose to eliminate grace periods. This will lead many consumers to stop using credit cards altogether.

44 Posted by John of Oshkosh at 05/28/09 11:49 AM

Sometimes, my credit card carrier, decides to charge me an annual fee. I always give them a call and ask if they are serious. They always say yes. Then I ask them to drop the charge, pay it for me, or else cancel my card. They always relent. In the last several years, they have not billed me.

My question is, in light of the new law can I expect them to add the charge and offer to drop me if I chose not to pay it? I have had this platinum card for many years.

45 Posted by Bob at 05/28/09 11:53 AM

How does the highest interest first policy affect zero interest deals? I bought my last computer on a 1-year no interest plan(and paid it off in 5 months) just because 0% is a pretty good rate. While I was careful to charge _nothing_ else on the card, some stores might gleefully put your payment onto smaller charges
just to suddenly hit you with 27% back interest on the large ones.

46 Posted by Lauren Bowne at 05/28/09 11:57 AM

@John,
You are doing the right thing. It can never hurt, and more than often it helps, to call your card company and challenge a new annual fee. These card companies have every reason to retain you as a customer. They make money off the interchange fees each time you use your card, even if you pay in full each month.

Though it may seem like the card companies hold all the power, you have the power to decide which card to use. If the company takes away your perks or adds fees call them up and complain! They have no reason to drop a customer who regularly uses their card. They don't want to loose you to their competitors.

47 Posted by david bishop at 05/28/09 11:58 AM

What do you know about this card?

Simmons First Visa® Platinum
One of the lowest ongoing APRs in the nation
Fixed APR of 7.25%
No annual fee

48 Posted by Judith Warner at 05/28/09 12:03 PM

At one point Connecticut had an interest rate cap of 15% for credit cards. This was voted out when interest rates climbed to very high levels. However, when the interest rates moved down to almost nothing, the credit card companies are still using high rates and increasing them for no reason. Unfortunately a cap was removed from the bill before it was passed, so I see no real reforms. Banks used the excuse that they needed the higher interest rates because of the economic inflation, so how about the same reasoning for moving to lower interest rates because of today's economy?

49 Posted by roy ferree at 05/28/09 12:03 PM

How do I keep my credit card company from charging a fee if I pay off my card monthly

50 Posted by kbedics at 05/28/09 12:06 PM

these changes will come too late for me- my husband and i closed all but 2 of our credit card accounts and had to take out a major debt consolidation loan as a result of our credit card spending. i hope others will learn from our mistakes- don't buy what you can't really afford and when you must use your cards -pay off your credit cards within the first few months after you make a purchase.

51 Posted by Lisa at 05/28/09 12:09 PM

Useless law - stop crowing about it as if it were an accomplishment. Nothing short of a cap on interest rates that amount to usury will be an accomplishment.
The Congress voted overwhelmingly because this bill does very little, yet the press has been an accomplice in pretending it has. Obama should have vetoed it and required Congress to try again till they did something significant.

Teaser rates must be for at least 6 months? They already are - and six months is nothing. Did they limit HOW MUCH THEY CAN GO UP AFTER THAT? No.

Did Congress tell the CC industry that they have to have a good reason increase your rate? NO.

Useless, useless, as usual. Congress is bought and paid for by Corporate America. There is no "By the People, for the People." And I"m wondering about Consumer's Union - what motivates it to act as if this is an actual improvement for the People.

52 Posted by Lauren Bowne at 05/28/09 12:12 PM

@Bob
Regarding 0% interest deals, the new law helps ensure that you pay off those balances in time to avoid losing the promotional 0% rate.

Under the law card companies are required to allocate your entire payment, above the minimum payment, to your deferred interest balance during the last two billing cycles before the promotional period ends.

53 Posted by Kelly at 05/28/09 12:32 PM

This credit card consumer protection bill is a JOKE! I pay my bills on time each month and had 2 credit cards that before were 9.9% and 12.9% APR. One has gone up to 30.1% and the other 23.99%. I have another one that jumped from 18.95% to 64.9%!!!!

All have happened since the start of the year due to the threat of the passing of this bill. I have good credit, pay my bills on time each month for years. Now because of cc reform, the APRs on ALL of my credit cards have jumped. All of the credit card companies have increased their rates before the bill goes into effect for next Feb., so they can gouge us all now and in the future. 64% is not interest but USURY!! Why were there no provision in the bill to cap interest rates and fees?? Guess you either get screwed one way or another. I have good credit and will pay off what I owe and then it is cash from here on out except for the big purchases but no more credit cards for me. I'm a good customer with a decent credit score but I'm not using them again. THANKS OBABMA!

54 Posted by NancyB at 05/28/09 12:41 PM

I would be happier about this if there wasn't a gift to the NRA attached, i.e. legislation allowing loaded guns in our national parks. I guess I won't be using my credit cards in the national park system any more.

55 Posted by Chris at 05/28/09 12:44 PM

I currently have a credit card that I pay off in full every month. I'm 19 years old and work full time to support myself totally independent of my parents who have far worse credit than I. Since I've had my current card for 3 years will I really be required to provide a proof of income? If so that’s just what America needed -- taking away and restricting the rights of adults because a few are irresponsible. >.

56 Posted by joan at 05/28/09 12:51 PM

Big deal--doesn't sound like you accomplished much. Our rates are already sky high, and not coming down. And do any of us want another credit card anyway to get a lower rate? Or can we even get a credit card in this economy. So, just what is it you did for us? That they have to tell me in advance if they increase my 31.99% rate?
and it doesn't start now, but next Feb?

57 Posted by Dick at 05/28/09 01:07 PM

Have I heard correctly that one amendment that was added before the vote, was to allow weapons to be carried in our National Parks?

58 Posted by Alex Allias at 05/28/09 01:10 PM

I think this bill is missing something very important as well. What is really is unfair is when a credit card company has just raised your rates and as a result, you cancel the card. This inherently ends up hurting your credit! This idea of old accounts being a reflection of good credit management only plays to the credit card companies getting the best of you either by higher interest rates or by lowering your credit score. Shopping around and getting new cards with better interest rates should reflect positively on your credit report as good credit management. It is ridiculous to keep unused cards open indefinitely just because of this credit score game. This needs to be fixed!

59 Posted by Grams at 05/28/09 01:30 PM

Let's not cheer too loudly because until we can stop the control of our Congress aka sell-out with contributions I'll call "bribes" we have won nothing. Just watch and see because the credit card companies will start charging fees elsewhere-like on your banking services? Just like our Social Security they give with one hand and take with the other we we actually lose any COLA we gain? We the People need a Revolution in this country in order to take back our government and make it represent us not corporate oligarchy!

60 Posted by Marc Garman at 05/28/09 01:35 PM

Without going into a dissertation as I have in many letters that I have written to the President, Vise President and State Reps. I suppose I can sum up my issues with one long question. So hear it is.

What is any of this reform going to do for the people like me, who have several credit cards with large carried balances on them who never missed a payment and never paid late, AT ALL, whose Credit Card Lenders ultimately turned around, raised interest rates from 0%-7% to 18%-30% and also took cut the available credit limit back to the amount owed on the card???

For what reason, because they could. Though I supported this movement from day one with letters, calls, emails and votes, I feel like all this reform is coming too little too late. None of this seems to be retroactively fixing my problem.

Yes I had a lot of cards and carried large balances, but before the lenders hiked the rates and cut back my open limits, I was in complete control of my finances. Between my income and my Wife's income we were not struggling. Now, after all of this seemingly criminal action by every singel lender, we are finding it difficult to live week to week. We pay out nearly 50% of our income in interest each year....no typo here, nearly 50%. THAT IS HIGHWAY ROBBERY!!!! I have been writing enormous amounts of letters and so forth asking for relief from the government...RETROACTIVE RELIEF. Not reform and relief coming in 2010!!!! Let's speak out about THAT!!!!!!!

61 Posted by William Worthington at 05/28/09 01:37 PM

For those who pay off their balances religiously, consider this (as I do) Join a credit union, get a bank card from them - it's a debit card - always claim it to be a CREDIT card when you use it.
Now the balance is always zero, you can view it on your computer. What's to beef? NO interest and now I get $10.00 each month back.
And remember, as a coop, there are no shareholders sucking on you.

62 Posted by Jane at 05/28/09 01:44 PM

I have always paid the full balance on time so wasn't paying attention to the change in interest fees as they did not affect me. Now I read that I will pay annual larger annual fees and I cannot cancel these cards without dinging my credit score.

Anyway around this? I would love to cancel the cards I have that have annual fees. The air miles are close to worthless and I have little desire to fly anywhere anyway,

63 Posted by Larry B at 05/28/09 01:50 PM

This post is to Lauren Browne. I'd like your response on two issues.

First, re: International workers and consumer protection. I think CU's focus is TOO NARROW if you can't see the conncection between jobs of U.S. citizens and our role as consumers (@ 70% of GDP). What do you think we spend as consumers, if not our job earnings--for those of us who still have jobs! We can't spend what we haven't earned and saved, and job-creation, wages, and benefits should be some of the criteria for evaluating the corporations and firms that produce the goods and services we consume, as well as the quality of those goods and services.

Second, although I think this legislation may be an incremental improvement, I agree with Kelly (Post #53) that NOT setting a cap on credit card interest rates and NOT having this legislation go immediately into effect appears to led to interest-rate gouging here and now! It's like gasoline prices--if all the "competitors" raise their prices or rates, then where do we go to not get gouged? Perhaps Kelly is right, and we should go back to cash, and debit cards with overdraft limits as a back-up.

64 Posted by at 05/28/09 02:18 PM

To: Lauren Bowne
BOWNE is also our family name. Are you from NJ? PA?

Obama's new Bill hasn't gone far enough.
A CAP must be put on the interest rates that banks are allowed to charge.

65 Posted by Roger Hornaday at 05/28/09 02:23 PM

We have shoped around for credit cards for years and use only cards that are consumer friendly. We only charge what we can pay off each month and call the cc company if they try to charge an annual fee. If they don't back down, we cancel the card. This bill should not have much of an effect at all on us, since we have a very high credit score and have only been using cards that we have had for many years.
To shed some light on the guns in national parks provision that passed with this bill, this provision (if anything) will probably make you safer in national parks since it only makes it legal for people that have "concealed carry permits" that require extensive state and federal background checks before you can obtain the permit to carry a weapon. Any other person that decides to carry a weapon in a Federal Park will still be doing it illegally just as criminals already do. Federal Parks already have deaths from accidents, animal attacks, criminal attacks, etc. and I for one would feel safer knowing that someone may be near that is legally carrying a gun who can protect me if I am attacked by a criminal or an animal.

66 Posted by Jim at 05/28/09 02:33 PM

It is hard to believe that Sen. Chris Dodd is involved with any legislation that will help the average citizen. This bill will be the end of credit card usage as we know it for those of use who pay our statements on time and do not use the minimum payment with interest on the unpaid balance. We have enjoyed mileage, cash back, no fees, etc. It helped us to travel without cash. This bill will hurt those of us with good payment habits and not do anything for the people that pay the minimum. I see nothing to celebrate.
Jim

67 Posted by Richard at 05/28/09 02:35 PM

The bill is too late with too little. In my opinion the Legislators have dragged their feet long enough to allow a watered down bill to be passed. Once again we are let down by the very people we entrusted to protect us.. Time to start voting out of office any one who has been there for more than one term that did not introduce, support and vote for legislation that protects the American Consumer and really demonstrate that we have the will and the power to take our Government back from those who do not serve the voters of this once great country.

68 Posted by Carol at 05/28/09 03:00 PM

I am with Marc Garman....RETROACTIVE is the way this should have gone. All the CC companies are doing now is raising all fees and rates across the board trying to get as much as they can before Feb 2010. This current bill solves NOTHING! Caps also should have been put in place.....again this bill is USELESS!!!!!!

69 Posted by Gigs at 05/28/09 03:04 PM

What is with all the anti-gun comments here?

A provision allowing law-abiding citizens to exercise their right to carry in national parks is not a problem.

If they make it legal for criminals to carry guns, then start screaming.

70 Posted by Betty J. at 05/28/09 03:42 PM

Why can't they make this retroactive. Most of the banks have already increased rates to the max. and have done things that violate this law already. This hurts everyone now, not next year when the "law" takes affect. This isn't helping the economy or the unemployed NOW! We need help now.

71 Posted by Armelle t. at 05/28/09 04:02 PM

This bill does not go far enough. Like some other comments above, i paid my bills on time and above the minimum payment. They raised my interest rate from 8% to 19.99% and from 6% to 17.95% respectively for no reason as I have an excellent FICO score. I refuse the new rates and one of the company will cancel my credit card with them in August. Will that closing hurt my credit rating?

72 Posted by Thomas L. at 05/28/09 04:45 PM

I am appalled that Congress passed and the President signed this into law. If they had more backbone, they would have made the CC portion stronger, i.e., capping interest rates.
The cowardice of both Congress and the President shows in that the bill was allowed to become law with the "Let's take our guns to Yosemite National Park!" What is the rationale for taking guns into the National Parks? Hunting? If not, then folks who take their kids to see the wonders of the parks had better wear orange jackets over their Kevlar vests and be on the alert. Such a restful way to enjoy the scenery.

73 Posted by CJ at 05/28/09 05:42 PM

I haven't read every single post, but the idea that we can just shop around for a card with no fee is actually incorrect. When you cancel a card, your FICO score goes down. In my case, my cards have very high credit limits. I pay off my balance every month. If one of those cards decides to choose to impose an annual fee that I do not accept, the card will be canceled, lowering my FICO score (which is dumb, but that's a totally different discussion).

To top that off, I do not currently have a permanent job, so I may not be considered a good credit risk, in spite of my stellar payment history (of course, when you consistently pay off your balance, the credit card companies consider you to be a "dead beat.")

Bottom line: the people who can least afford it are forced to pay the fee.

74 Posted by Harold M. at 05/28/09 05:46 PM

I supported the effort, now (I pay all my credit on time - in full) the credit cards are coming after me. (Maybe) Interest on my balanced from day of charge, return to annual charges, etc. Great#@%&!

75 Posted by Celeste V. at 05/28/09 06:08 PM

I've never had bad credit and I was just informed by American Express that my credit limit has been lowered from $15,300 to $1,000. My credit score is in the excellent range too and I only had a $36 balance on the card. A Visa card that I have with a 7.9% purchase rate will be increased shortly to 17.9%. What these top banks are doing to their best customers is going to force us all to close our accounts. Why are all the latest reforms only seeming to help the poor and financially irresponsible? What about those of us who pay on time and maintain good credit? We need leadership out there to look out for the hard working, bill paying citizens and right now that is not happening...looks like it's time for more change!

76 Posted by at 05/28/09 06:18 PM

This is just another Obama bill that everyone gets excited about when in actuality it is punishing the people who handle their finances correctly. Obama and his cronies keep passing these bills where the people who are succeeding are the "bad" ones who need punished. I pay my bills on time, never get charged interest or an annual fee and get 5% back-so now I am being punished. I know my card will start charging me a fee to make up for all they are losing from not being able to charge interest on the entire balance when other people don't pay in full. This bill does nothing for anyone; it is just another public relations move by the Obama socialist machine. Smile for the camera, read the teleprompter and the media eats it up.

77 Posted by Joanne Licsko at 05/28/09 06:43 PM

Boycott credit cards! If we stop using them, the cc companies will have to find ways to attract us. Pay cash! Use debit cards until they add fees on those too!

78 Posted by Marilyn O at 05/28/09 07:11 PM

We are small business owners and as such are continually taking hits. Our business is seasonal, but the banks have closed their doors to any type of lending and for us to get through the lean winter months and the bad economy we were forced to rely on credit cards this past year.
The only difference between the credit card companies and the mob is that they don't shoot your knee caps out. So, the credit card companies have us now and they arbitrarily raise their rates. Suddenly, after seven years of good business practices we are waist deep in debt that keeps growing as the rates keep changing along with the due dates for payments.
All this bill has done is give them more of an incentive to raise their rates before the reforms go through. Owning a small business used to be a way for people to be independent, contribute to the community, and make a living. No more. It's just too tough.

79 Posted by Erin at 05/28/09 08:58 PM

I have a bank of america consodation loan it was for 85 months. Now I have always paid 2 times more than original payment, until recently when I had to pay a higher interest card off. All the extra money I paid on this loan, I transferred a higher interest card to it. They never told me it would start my months all over again back to 85 months. They never mentioned since consolidating would jack up my payment and interest rate, after the reps kept telling me nothing would be changed.

I just got a letter in the mail now since the law has changed they have to reduce my months to 60 months which restarts my credit line/loan, now my payments are more than I can afford. This new law isn't helping us at all. I am trying to get out of debt NOT more into debt.

80 Posted by Rhonda at 05/28/09 10:12 PM

I paid more than the minimum payments on time on my cards and my other debts but, my rates were raised to as high as 29.9% because the issuers decided that I have too much debt!! I can't afford to pay them off as I am on a fixed income.

81 Posted by Cameron at 05/28/09 11:26 PM

This bill may have good intention Can the credit card companies still(banks) raise rate until February 2010 on your present balance?

82 Posted by Dave Adams at 05/29/09 02:01 AM

Once again, the more things change, the more they stay the same. The legislation still gives the banks' legal eagles a head start to do end-runs around it. In order for the law to have any bite to it, it should have been implemented IMMEDIATELY!!! Case in point: I heard something on the radio tonight that the banks are starting to raise "maintenance fees" and "surcharges" on checking and savings accounts to offset the anticipated loss of revenue. Personally, I don't see it. I learned something a couple of months ago. I opened a checking account with a major bank using my paycheck. The funds were available 2 days later. Cool. 2 weeks later, I deposited my paycheck in my account again. I was told that my funds were not going to be available for 10 business days. I was paid again before the check cleared (drawn on local bank), meanwhile, the bank reported 1st Qtr earnings of 3 BILLION dollars. Now I see how. Earning interest on money provided by chumps like me. I wised up. Now I cash my paycheck at Wal-Mart, ($3), and deposit the cash in my account. Lesson learned. As far as the gun law goes, maybe a disgruntled customer will get lucky enough to have a convenient "accident" involving a high ranking banker in a national park. Sound familiar???

83 Posted by Dina at 05/29/09 07:13 AM

It is true, the bill had been passed under Bush.....I was hoping that it would start immediately....because my CC Company has raised my rate effective end of June Cycle from 11% to 22%. Just because they can...by next February they will have increased everyones balances to a higher rate...and since your payment first goes to the total current balance and only the amount over the minmum payment goes to the old and highest rate...what have we gained...I have only used by debit card since January...it was tough at the beginning but now I don't buy unless I have the amount in my checking account.....The law should have taken effect immediately...which was the plan

84 Posted by Roy at 05/29/09 08:22 AM

In my opinion this whole bill is about our politicians saying "see we are looking out for you". Usery is the problem and until something is done about that the cc problem for most Americans will continue. The interest rates allowed by law are higher for banks than they are for payday lenders here in Ohio and we all know what loan sharks they are. We need a reversal of the 1979 SCOUS decision that allowed this to happen.

85 Posted by Vicki at 05/29/09 10:08 AM

The banks and credit card companies should be compelled to send notices of rate hikes and any other significant changes in policy:

(1) in a separate envelope, isolated from any advertising or other materials.
(2) and, the notices headlined in 16 pt bold type or higher.

Too many times we receive these notices buried in an envelope full of invoices, ads or "junk" information that is usually tossed directly into the trash.

There should be a penalty for non-compliance.

86 Posted by LM at 05/29/09 11:44 AM

Here's an idea, a way we can retaliate -
stop paying on your cc debt, and change your phone number. And don't lose any sleep over feeling like you've done something wrong - you've probably already paid them what you charged many times over in interest. I know they've gotten their money's worth out of me. Purely by interest rate increases, since I stopped using the cards long ago, my debt soared by thousands.

Let's see them scramble for customers, like they ought to have to, the way they treat us.

87 Posted by Mike at 05/29/09 11:53 AM

This bill has done nothing for us. Just last week my mother received notice from Cap One that her interest rate is going from 9% to 16.9%, despite having a FICO of almost 800. This is a result of the new bill.

The truly disappointing thing is that Consumer's Union views this as a victory.

It is not a victory for consumers.

88 Posted by Mike at 05/29/09 12:02 PM

I submitted a post yesterday morning, and it is not on the blog. I just submitted another a few minutes ago. In yesterday's submission I criticized Consumer's Union, which must be the reason the submission was not posted as it was polite and there were no foul words or statement.

If as a subscriber, my thoughts are not to be posted because I am critical of CU, then I have wonder if this is worth my subscription and business.

89 Posted by Joshua Hill at 05/29/09 12:17 PM

Really, that's the best they could do? no wonder it passed so easily.

90 Posted by Southbay at 05/29/09 04:20 PM

Of course it could have been better, but it's a great start - and it begins by putting your elected officials on notice; represent your constituents or we'll find someone else who will. Loss of revenue to bankers is what loss of power is to politicians. Don't let the air out of this effort.

91 Posted by Bruce Ogden MD at 05/29/09 06:25 PM

The new credit card legislation is only a minor victory for consumers. Although banks will be required to notify you in advance of rate hikes, they can give this notice and raise rates as high as they like for no reason.

There are no provisions in the new law to prevent the greatest crime against the American people: at a time where tax payer dollars have bailed out all major financial institutions and banks are charged the lowest interest rates of all time when they borrow money, consumer interest rates, even to those with the highest credit scores, are being raised to 29-39%, levels that until recent years were only charged by organized crime loan sharks.

The government expects consumers to help end the recession by increasing consumer spending, but at these credit card rates (and similar high rates on auto loans, etc.), only the most dedicated shop-a-holics are going to be doing much consumer spending.

It is criminal that our elected leaders, including Joe Biden, the patron saint of credit card gougers in Delaware, do not have the guts to take on the banks and reestablish usary laws that would place a ceiling on interest rates that would provide real relief to suffering consumers and would be a boon to the economy.

92 Posted by J Hopp at 05/29/09 08:23 PM

I already made this comment, but cannot find it on this blog.

Until President Obama puts a CAP on the interest that Credit Card Companies are
allowed to charge, his new bill will hardly help those paying those high interest rates.
Credit Card Companies have a license to steal from the little guy.

93 Posted by LV Linda at 05/29/09 10:21 PM

All of my bank cards have already raised my interest rates. Most I have had since the 1980's. Several of them had very low rates, however, they were bought out by the infamous Bank of America, who promptly raised all rates once the company was acquired. Now, because of the new laws going into effect, they have all been raised again. I have a FICO score just under 800, have always paid on time, and make a substantial income. It does not matter that I have paid off two mortages with Bank of America over the years. It does not matter that I have always been employed. It does not matter that I have always paid more than the minimum. It does not matter that I own stock in the company. Nothing matters, period. It is a disgrace that the government has allowed this to happen and have convinced people that it is a good thing. By passing this law, all it has done to the "good" people, is raise their rates and lower their available credit. We are now paying for the deadbeats. Interest rates should have been frozen and retroactive. No thanks....I think I'll buy an island.

94 Posted by Dan at 05/30/09 09:19 AM

I don't see a big win for either the Consumers Union (or the credit card companies). The consumer takes it in the shorts from the banks regardless. The change is good only if the credit card companies don't try to compensate by penalizing those holder who have free credit cards, pay balances, and take advantage of pay back plans. If these existing perks disappear, then some if not a substantive number of credit card holders (I know I will) endure the added chore of paying by bank debit or going back to the store credit card of past. It's a shame MC, VISA, and others are making these threats. Only they will lose. Merchants will eventually stop allowing their charges as well which should help the consumer as they charge these merchants 3 to 4 % for the service that is passed thru to the consumer via the prices being charged for merchandise.

95 Posted by Dave at 05/30/09 12:10 PM

Is there anything in these new rules that can let the companies take away the money we already earned?

I have $2200 from the GM mastercard and I do not want to lose it.

Thanks

96 Posted by JR at 05/30/09 12:38 PM

After reading all the comments thus far, my belief that this law is absolutely meaningless has been confirmed. I have one friend with good income and high credit ratings whose cc limits were drastically lowered, and another whose rates were drastically increased for no apparent reason. What a shocker! What did everyone expect with such a weak, watered-down bill whose few minor reforms don't even go into effect until 2010? Even though the coming reforms are sorely inadequate and don't clamp down nearly enough on these highly unethical practices, of course the issuers were going to slam their cardholders in every way they could until the law takes effect! Fortunately, I am one of those who no longer owns credit cards. If I did, I would be boiling mad at the Administration, the Congress, the card issuers (banks) AND Consumers Union. What will it take to get some REAL reform? This is nothing but government and corporate sleight of hand, and nothing to celebrate!

97 Posted by Alicia at 05/30/09 08:15 PM

The only way for this bill to have helped the consumer from being robbed would have been to make the bill retroactive to say, January of 2009. The terms of your agreement should have had to be locked in at that time so that credit card companies didn't have notice to implement any and every change they wanted to...especially to those of us who have never paid late, paid more than the minimum balance,and have been responsible with their credit. To allow the Credit Card companies to raise rates in this manor is criminal. In addition, there should be a cap on just how high any interest rate can go. As far as I'm concerned,I like most of you posting here, have been an excellent and loyal customer. It is more than shameful that our President (and I'm an Obama supporter)and Congress have allowed this to happen. They certainly aren't looking after or protecting me. Fortunately, I am in the position to pay off the balance on most of my credit cards and will be able to pay the others off with small and consistant payments over the next 24 months. I feel very sorry for those who can't and I can't imagine the ripple effect this horrible act of greed is going to take on the economy and the pysche of those of us who have played fair. I won't use credit cards again except for a medical emergency. The Credit Card companies are going to kill themselves off since this is really the final staw for most of us who feel we are getting screwed. The people who can't pay the card payment with the increased interest rate will simply default on the card and those of us who can pay off the cards will pay them off and not use them again until some sense of balance is brought back to the amount of interest lenders can charge and the terms to which they must be held. This shake down may take a few years, but after those of us who are fortunate enough to pay off their cards and never use them again converge with the millions of people who simply can't pay the cards (with the ridiculous interest rates imposed) the banks will be begging for our business and will see that their greed cost them everything. This bill is the biggest sellout by Congress yet. We should all be marching in the streets and demanding that this bill be corrected.

98 Posted by Alicia at 05/30/09 08:38 PM

"Celebrate the new Credit Card Bill"...Give me a break. There is nothing good about this bill to celebrate and your organization should be out in front protesting it. I guess we know now what kind of organization you really are. Better late than never. Based on your endorsement of this shameful greed filled bill I will never trust one word you say. Shame on you. By "celebrating" this bill you've shown you are in with all the others and I hope you lose any credibility you may have had. You've lost my support and confidence forever. You should have insisted that this bill be structured so that it was retroactive and that agreements that were in place were frozen as of at least January of 2009. In the meantime, the credit card companies have been given free reign to literally rape us financially. We will look back at this bill as one of the worst things ever done to consumers and you helped it to happen. Instead of your joyful celebration headline you should have proclaimed the consumer has been raped once again, declared war on the credit card companies, congress, and encouraged people to march in the streets until the matter was settled with something other than GREED. I am ashamed of you. Can't wait to hit the unsubscribe button as should everyone else who received this absurd "let's celebrate" email. Oh, I may hang around just long enough to see if you have the nerve to post this. If it not posted I can just add that information to the emails I will be sending educating the public about who you really are.

99 Posted by Eloise Christiansen at 05/31/09 09:51 AM

I have had an MBNA card for quite some time--now it is a Bank of America card. Along with being a B.O.A. card--the interest rate rose to 12.9% from 7.9%-when it was MBNA. I am going to pay off the card and shred it. I sent them an e-mail letting them know how I feel about the increase--and they replied to me--they never said a word about the increase--as if that surprises me--NOT!!! Thank you for letting me put my 2 cents in.

100 Posted by Alicia at 05/31/09 11:40 AM

I'm still waiting for the post I made on May 30th that was critical of Consumers Union for daring to suggest we should be "celebrating" this new law to be posted.

101 Posted by Pam Lloyd-Camp at 05/31/09 04:06 PM

Capital One sent me notice one month ago that beginning September 2011 my purchase rate will increase TO 14.65% plus the prime rate, currently that would be 17.9%. My current rate is 7.9% and I've always paid over the minimum and sometimes the entire balance. I must close or decline the new terms by July 28, 2009. I think the credit card companies are testing to see how many of us will put up with their greed. So the best policy will be to get your self and your business in a state where when you need a credit card, you use your debit card and all your accounts be closed. MAYBE then the credit card companies will get the message because those who still want to earn income thru USERY will not be able to any more than those of us who were willing to pay a reasonable interest were able to pay their rates.

102 Posted by marcia at 06/02/09 12:39 PM

The bill wont help me, since I always pay monthly in full;but I signed CU petitions for its passage & now ***regret it!*** There is another bill **attached** to it to allow **concealed weapons in national parks!
If I had known this, I **never would have supported the credit card legislation. Shame on you for withholding all the details of the bill. Guess I have to stop just adding my name to petitions when I dont fully know what's involved. ***Why doesnt CU go after this bizarre method that Congress uses to get bills passed>***

103 Posted by Chuck at 06/02/09 03:45 PM

Why are we not allowed to do what is or at least has been done it Europe (I only know for sure about Great Britain) wherein the merchant or provider can tell you how much you can save by paying cash instead of using a credit card. Come on! Three to five percent or more is a considerable amount of money, but in the U.S.A. merchants are not allowed to give you a choice. You make a $300 purchase and in England, if you pay cash you may pay as little as $285 instead of the credit card price which is posted.

If they start charging me an annual fee because I pay off the balance each month, they will no longer get my business except in extreme cases such as when I travel.

I will search for a card with no annual fee. They make money off me every time I use the card, whether I pay it off each month or not.

104 Posted by Kurt at 06/03/09 02:25 PM

If credit card companies start demanding annual fees I would disregard the recommendation to switch to another card because the credit rating agencies give a lot of weight to how long you've had credit with a particular credit card company when determining your FICO score. Also, I'm wondering if CU didn't agree to this bill because it wanted to save face and credibility by coming away with something in the way of new legislation. Believe me, I know it must be a major undertaking to get legislation passed which is seen to be against credit card companies. Those politicians don't work for free, if you know what I mean.