Credit Card Companies Adjusting to "Reform" | CreditShout

Credit Card Companies Adjusting to “Reform”

By Kevin / August 20, 2010

THIS PAGE MAY CONTAIN AFFILIATE LINKS. MEANING WE RECEIVE COMMISSIONS FOR PURCHASES MADE THROUGH THOSE LINKS, AT NO COST TO YOU. PLEASE READ OUR DISCLOSURE FOR MORE INFO.

Credit Shout may collect a share of sales or other compensation from the links on this page.

All of the provisions of the Credit Card Act of 2009 have now been implemented. For consumers, this is generally good news. Penalty fees have been capped, notification is required for hikes in interest rates, and gift cards are usable for at least five years. However, credit card companies are already adjusting the way they do business in order to earn additional revenue without breaking the new laws. Here are some of the “tricks” that you may start seeing from credit card companies.

  • Increases in rates on balance transfers (from about 3% to 5%)
  • Introduction of annual fees on cards which did not previously have them
  • Higher annual percentage rates across the board
  • Stricter credit score requirements to get the same credit limit or type of credit card that you used to qualify for
  • Value reduction on rewards points (i.e., 1 point for every $2 spent instead of $1)
  • Introduction of caps, dormancy fees, or expiration deadlines on rewards points
  • Loss of rewards points for delinquent accounts

You can find a complete overview of the Credit Card Act of 2009 here.

The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone. Additionally, the opinions of the commenters are not necessarily the opinions of this site

Leave a comment:


shares