Originally posted by: LegendKiller
Originally posted by: spidey07
As much as I hate gubment interference in any of this I have always had a severe problem with the clauses in card agreements like "can change the terms for any reasons at any time". Some common sense legislation already exists (some bill passed 2-6 years ago? Some consumer protection stuff) and it wouldn't hurt to expand that to prevent the outrageous terms the credit card companies get away with.
Yes I understand that I signed up for it and agreed to it, but really don't like the ability to change the terms so severely. No line of credit that I know of has such a thing either by law or by competition.
-- Require anyone under 21 to prove that he or she can repay the money before being given a card, or have a parent or guardian promise to pay off the debt if he or she defaults.
Good idea, gotta prove you can pay it.
--Require lenders to give customers 45 days notice before increasing rates and mail their bills 21 days before the balance is due.
Somewhat already being done.
--Ban fees if customers want to pay their bills by phone or online.
Only shitty banks do this anyway
--Prohibit over-the-limit fees unless a cardholder elects to be allowed to go over their limit.
meh, you shouldn't be going over the limit so you face whatever stupidity penalty there is.
--Require lenders to say how much time it would take and how much money in interest would be paid if only the minimum monthly payments are made.
BIG HELL YES. If only to open people's eyes that never learned how interest works.
--Require that gift cards remain valid for five years.
No reason not to do this.
The "consumer protection act" or whatever it was, was nothing more than a sham piece of legislation put forward by credit industry lobbyists and pushed through by pro-corporate Repuglicans. It was said to lower borrowing costs, but all post-act studies who that it *increased* borrowing costs. It also is currently preventing faster renegotiation of mortgages and debt.
Overall, it was a giant scam perpetrated by the credit industry and their cronies.
If you really want credit change, the following are *musts*.
1. No double-cycle billing. Charging interest on interest is a crime when the principal balance was paid off.
2. No "universal defaults". Unless you have cross-default language in the credit agreements, which you have to specifically sign and acknowledge, as a line item, then cross default increased pricing should be outlawed.
3. No rate increases on current balances.
4. Delinquent charges only on 30+ day delinquencies and capped at 1% annual rate, or $10, whichever is more.
5. No interest on charges.
6. No "overlimit" fees. If you are over limit, you get denied. Period. Everything else is bullshit. If you want an override, call the company and then they can charge you, but I would advocate that they give you a temp increase up to 10% of your available credit.
7. No interest -> principal, interest should not be capitalized into the balance on the card, especially considering when they do this they can then charge over-limit fees.
8. No over-limit fees on any delinquency, interest, or over-limit fees. No "extra" fee should create over-limit fees.
9. No decreasing credit limit down to the current outstanding. If there is to be a decrease, it *must* be 10% over the current principal balance.
I worked for a CC company in their treasury/securitization department for a year. I absolutely hated it, I felt like the scum of the planet, just knowing how much they fought for letting consumers continue to get fucked.
It's like indentured servitude and it should be stopped. The above 9 things would help significantly.
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