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  • December 2008
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  • Mary K. Lenahan, J.D., Realtor

Bail out of American Consumers Needed Now – Not in July 2010!


I was pleased to read that regulating authorities took action to prohibit some of the oppressive and unfair practices of credit card companies.

Why, you got to ask, is the regulation not expected to take effect until 2010?

CNN news reports today that The Federal Reserve Board, the Office of Thrift Supervision and the National Credit Union Administration approved a consumer-friendly regulation pertaining to credit cards, which is not expected to take effect until July 2010.

The regulation rules will prohibit banks from raising the interest rates on pre-existing credit card balances unless a payment is over 30 days late, and from applying payments in a way that maximizes interest penalties.

Another oppressive credit card company practice that will be prohibited is the employing of the “universal defaults” policy, which allows a credit card issuer to substantially increase interest rates on preexisting balances if the customer is late on an entirely different credit card.

The government is “bailing out” the big boys NOW, not in 2010:
“Government to loan GM and Chrysler $13.4 billion from Wall Street bailout fund so that the embattled auto firms don’t run out of cash.” December 19, 2008 CNN headline

Why is the American Consumer put low on the list of priorities?

 

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