Thursday, December 18, 2008

Balance Chasing. The Economic Crisis Continues.

CBS News...balance chasing

Are you experiencing "balance chasing" with your credit cards?

There won't be any changes regarding the fine print on your credit card agreements until 2010. Will this be too late? Now that the banks and credit card companies are aware of the changes that will be made, won't they be taking advantage of the money they can swindle out of their customers now?

"Under the new rules, which take effect July, 2010, customers who are less than 30 days late on payments would not be subject to higher interest rates and their credit ratings won't take a hit, personal finance expert and author Jordan Goodman told CBS' The Early Show.

There will be no retroactive interest charged to previously paid bills; late payments on one card will not affect interest rates on another; and companies would be required to improve readability of monthly statements...

The changes mark the most sweeping clampdown on the credit card industry in decades and are aimed at protecting consumers from arbitrary hikes in interest rates or inadequate time provided to pay the bills." -- CBS News

If these rules come with consumer protection clauses or laws for the time between now and 2010, they will be a good thing. Without consumer protection, these laws may be cause for credit catastrophy during this current economic crisis.

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