Kindler, Gentler Credit Cards? Credit Card Reform Long Overdue
May 9, 2007
Credit card companies are going to ratchet down their money grubbing under the pressure of recent political scrutiny according to the June edition of Kiplinger Personal Finance.
- No more double-cycle billing for JPMorgan Chase
- Citi won’t arbitrarily raise its rates and fees
- No more universal default for Citi
- Bank of America relaxes time period on lower rate adjustments
- Discover offers credit card interest rebates
Two other tactics that might be on the chopping block are those unsolicited convenience checks you get every day in the mail and the practice of credit card companies applying payments to lowest interest rate first.
I’m not always for government intervention but in this case I think it was overdue. The credit card companies weren’t regulating their own behavior. They were so caught up in making money that they were using any tactic they could to gain customers. We need to start addressing the massive debt crisis created by a lack of responsibility on the part of credit card companies and consumers. Hopefully these changes are just the first of many by the credit card industry.
Of course consumers need to make changes as well. According to the credit card industry I’m a credit card deadbeat since I pay my balance in full every month. Maybe I should start a club called the Debt Deadbeats. Are you a member of the club, or do you carry a balance on your credit card? If you want to join the club as a founding member just let me know. What would our motto be?
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