Even in this difficult time, credit card companies have been seen increasing interest rates on unwary customers throughout the country. Moreover, there is no limit to the rise in rates, as some customers have even had there rates doubled.
Earlier this year, when the Congress passed the legislation to protect consumers against unfair practices, many banks started making changes to their credit card terms. This was done because once the law is enforced; it will prohibit banks from increasing interest rates unexpectedly on existing balances unless the debtor is more than 60 days behind on payments.
However, since the new law won’t be enforced until next February, the banks are taking advantage of the time lapse. The delay in law implementation is being caused because the banks told Congress last spring that they needed the additional time to upgrade their systems.
According to the banks, the rate increases are justified to cover increased risks during the down economy.
In order to help the trapped customers, the House voted to move up the enactment date of the federal legislation last week, to prevent banks from continuing to increase rates. The House bill was passed 331 to 92.
Howsoever, it is expected that the legislation would fail in the Senate, with a number of senators saying that a shorter deadline would hurt the industry and tighten the availability of credit.
Search Here
You might also like
|
|
|
|
|
{ 1 comment… read it below or add one }
This is an informative article that will help people in making online