The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 doesn’t even go into effect until February 2010–but it’s already having some unintended consequences. Credit card companies scrambled to hike interest rates before restrictions on rate increases kicks in. Consumers screamed.
The lenders’ immediate increases and the cacophony of consumer complaints caused legislators to consider a 16% maximum rate for credit card interest as well as a $15 cap on late payment fees. But look out! Credit card companies will likely find another strategy to respond to these new reforms and protect their profits.
Credit Card Companies: Either Way, They Make Us Pay
While a credit card rate cap looks good to consumers at first, the backlash by banks and lenders may be more painful that people expect.
Since credit card companies prefer to extend the best credit terms and rates to people with good credit, you can expect fewer loans to be available to consumers with poor or even average credit. Because
What a year it’s been!
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