Defend Your Dollars is the website of the Consumers Union Financial Services Campaign, where we support reforms to the financial marketplace to curb bad practices by banks and lenders.
Credit Cards
Last year Congress enacted a comprehensive credit card law to end the tricks that trap consumers in high cost credit card debt. A few provisions went into effect in August 2009, and more major provisions are in effect on February 22, 2010. Banks in the meantime have been raising rates and changing the terms of credit card contract for millions of consumers and things will continue to changes within the bounds of the law. Tell us what's been happening to you!
The new credit card law creates the following consumer protections:
* Restricts all interest rate increases during the first year
* Restricts interest rate increases on existing balances
* Increases notice for rate increase on future purchases (effective 8/20/009)
* Preserves the ability to pay off on the old terms (effective 8/20/009)
* Places limits on fees and penalty interest
* Requires fair application of payments
* Provides sensible due dates and time to pay (effective 8/20/009)
* Protects young consumers
* Restricts issuance fees on fee harvester cards
* Requires enhanced disclosures
* Establishes gift card protections
Click here to read a full summary of the Credit Card Legislation.
Read the Federal Reserve Board's Tips on the new Credit Card Law.
Also check out www.creditcardreform.org for more on credit cards.
What tricks are the banks pulling now?
The credit card companies and banks are opening up their bag of tricks to get around new rules that will protect consumers like you from abusive interest rates and fees. We need to hear from you what those tricks are so we can fight back against them! Act Now!
Tell Us Your Story!
Credit card companies are raising interest rates and lowering credit limits while happily getting bailed out with our tax dollars. Have you seen recent changes to the terms and conditions on your credit card? Tell us your story and help us stop these card companies from unfairly picking your pocket!
We want to hear from you. Your willingness to share your stories helps us pass laws to protect you and your family.Read stories from individuals who have shared their stories, like:
Brian of Gardnerville, NV
Over the past seven years, by paying his creditors on time all of the time and monitoring his spending, Brian had successfully increased his credit score from the low 600’s to a recent 705.
How to complain to the Government
Online, by mail, phone or fax... Agencies need to hear from you!
Press Mentions
"These fees are like germs." by Kathy Chu, USA Today (May 28, 2009)
But the aggressive fee increases, consumer advocates say, underscore the need for regulators to crack down uniformly on bank practices that are pushing consumers deeper into debt - whether on credit cards or checking accounts. "These fees are like germs. They have a tendency to spread," says Gail Hillebrand, senior attorney at Consumers Union, which publishes Consumer Reports. The fees are "all based on the same bad business model," she says, in which consumers are promised one price and then later are loaded up with back-end fees.
Credit card consumer protection law may reduce purchasing power by Alexis Leondis, Bloomberg (May 22, 2009)
Credit-card companies will still be able to price according to risk, said Gail Hillebrand, a San Francisco-based attorney for Consumers Union. The legislation will ensure that the cost of borrowing money is disclosed at the outset instead of luring risky borrowers with a low introductory rate, she said.
Credit card protections come with some holes by Kathy Chu, USA Today (May 20, 2009)
Most of the provisions take effect nine months after the bill is signed into law — so likely in February 2010 — giving credit card issuers ample time to raise rates or fees. "This is a strong package, but it's a disappointment" that the protections won't take effect until next year, says Gail Hillebrand, attorney at Consumers Union
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