New credit card law kicks in today

[StageLeft]

Linktastic

This details the 8 changes that will kick in today. I don't think it mentions one I saw elsewhere that says if you opt out of a rate increase the company can lock your account but you're able to pay off the debt over five years at your current one.

I have to say that most of these changes make sense. However, it also seems to me that without stupid little rules and gotchas, this act wouldn't have been necessary in the first place, which makes me wonder how long it will be until more stupid little rules and gotchas are concocted in board rooms and then in several years the gov is again looking to close the loopholes.

 

[MovingTarget]

LONG overdue, imho.

Edit: Damnit, timewarp. OP below. (Sorry Skoorb)
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[Druidx]

Common sense regulations..... Who da thunk it.

Big fan of #3 Fee restrictions
A few years ago my CC company tried to charge me late fees for an online payment made on the due date. The 1st CSR I talked to even admitted my account had been credited on the due date but claimed I still owned the late fee. I was transferred to another Rep when I asked to cancel my card, she quickly apologized for the 1st Rep an removed the fee.

 

[simpletron]

Most of the provisions go into effect Feb. 22, 2010, unless otherwise stated

the only ones that state otherwise are 1. retroactive rate increases, 2. more advance notice of rate hikes and the 7. more time to pay, which start today. the rest, we are still waiting for.

edit: missed one

 

[StageLeft]

Originally posted by: simpletron

Most of the provisions go into effect Feb. 22, 2010, unless otherwise stated

the only ones that state otherwise are 1. retroactive rate increases, 2. more advance notice of rate hikes and the 7. more time to pay, which start today. the rest, we are still waiting for.

edit: missed one

You know that's what I originally thought but after skimming three articles in the last day all going on about today I thought I had missed something...

 

[Dissipate]

Outside of emergencies, credit card debt is the financial equivalent of self flagellation.

 

[jonks]

Thank effin god for no. 6. I transferred a multi-thousand $ balance way back at like 2%, and at some point, I don't recall when, I made a $300 purchase that just sits there at the 13% rate or whatever it is.

4 is a good move too. CC's on college campuses are like tobacco co's. Gotta get em and hook em young while they're dumb.

 

[OCGuy]

Originally posted by: jonks
Thank effin god for no. 6. I transferred a multi-thousand $ balance way back at like 2%, and at some point, I don't recall when, I made a $300 purchase that just sits there at the 13% rate or whatever it is.

4 is a good move too. CC's on college campuses are like tobacco co's. Gotta get em and hook em young while they're dumb.

Actually credit is extremely important and can affect everything in your life. Building a strong credit history young is crucial if you plan on buying a house, car, etc.


The real problem is credit education should start in middle school. We teach kids how to make brownies and cookies in some High School classes, but not once did I ever hear about one of the most important things in your life: credit.

 

[jdjbuffalo]

Originally posted by: Skoorb
I don't think it mentions one I saw elsewhere that says if you opt out of a rate increase the company can lock your account but you're able to pay off the debt over five years at your current one.

It might be new where they allow you to lock the account at the current rate. This would mean that you can keep paying at the current rate but you can't use the card until it is paid off and you accept the new terms. However, there has always been the option of closing an account if you don't agree with the change. What they are doing is changing the contract on you. So you can refuse the change and continue at the old rate until it is paid off.

//The more you know...

 

[Drakkon]

Originally posted by: OCguy
Actually credit is extremely important and can affect everything in your life. Building a strong credit history young is crucial if you plan on buying a house, car, etc.

The real problem is credit education should start in middle school. We teach kids how to make brownies and cookies in some High School classes, but not once did I ever hear about one of the most important things in your life: credit.

I've always wondered that myself. I took a marketing class in high school even and I don't recall ever hearing about money management or credit - just how to interview, how to advertise, and how profit works. What is good is they require anyone under 21 getting a card to have some sort of proof of income or a cosigner or they actually might have to pass a course on credit management which would be the ideal thing.

 

[Dissipate]

Originally posted by: Drakkon
What is good is they require anyone under 21 getting a card to have some sort of proof of income or a cosigner or they actually might have to pass a course on credit management which would be the ideal thing.

Here is the course: don't carry a balance on CCs.

I have never taken a credit management course and I have 0 debt.

 

[miketheidiot]

Originally posted by: Dissipate
Outside of emergencies, credit card debt is the financial equivalent of self flagellation.

qft

 

[Drakkon]

Originally posted by: Dissipate

Originally posted by: Drakkon
What is good is they require anyone under 21 getting a card to have some sort of proof of income or a cosigner or they actually might have to pass a course on credit management which would be the ideal thing.

Here is the course: don't carry a balance on CCs.

I have never taken a credit management course and I have 0 debt.

I was envisioning something more along these lines:
http://www.hulu.com/watch/1389...t-buy-stuff#s-p4-sa-i0

 

[miketheidiot]

Originally posted by: OCguy
Building a strong credit history young is crucial if you plan on buying a house, car, etc.

only if you plan on buying those things on credit

 

[OCGuy]

Originally posted by: miketheidiot

Originally posted by: OCguy
Building a strong credit history young is crucial if you plan on buying a house, car, etc.

only if you plan on buying those things on credit

Ah yes, I forgot this is AT, where everyone can just wire escrow $400K for a house.

 

[Dissipate]

Originally posted by: OCguy
Actually credit is extremely important and can affect everything in your life. Building a strong credit history young is crucial if you plan on buying a house, car, etc.

A house, perhaps, but certainly not a car (depending on your income). I got out of college a couple years ago, and bought my first decent car about 5 months ago. I saved up every dollar and plunked down $13,500 (net cost) for a low mileage 2008 Mazda 3. Unless your income is low there is no excuse for going into debt for a car. My car is a base model, but it is more than adequate for getting around town, and I also keep it well serviced.

 

[OCGuy]

Originally posted by: Dissipate

Originally posted by: OCguy
Actually credit is extremely important and can affect everything in your life. Building a strong credit history young is crucial if you plan on buying a house, car, etc.

A house, perhaps, but certainly not a car (depending on your income). I got out of college a couple years ago, and bought my first decent car about 5 months ago. I saved up every dollar and plunked down $13,500 (net cost) for a low mileage 2008 Mazda 3. Unless your income is low there is no excuse for going into debt for a car. My car is a base model, but it is more than adequate for getting around town, and I also keep it well serviced.

^ This is an example of poor education.


With great credit, you can get a brand new car with 0-1% financing. Free money. You could have put most of that $13,500 in an account where you were making 5%+ on it. Instead, you tie up your cash in something that is going to depreciate.

The "save up and buy everything cash because credit is evil" is fear brought about by ignorance.

Apartments check your credit now, as do employers.

 

[StageLeft]

Originally posted by: OCguy

Originally posted by: miketheidiot

Originally posted by: OCguy
Building a strong credit history young is crucial if you plan on buying a house, car, etc.

only if you plan on buying those things on credit

Ah yes, I forgot this is AT, where everyone can just wire escrow $400K for a house.

You can't? I bought my house with cash at the tender age of 23 and then bought a much bigger one 18 months later. All cash, all the time

In regard to a car deal, normally a 0-1% finance is an alternative to something like "cash back", so it can still technically be worth paying cash, depending on the deal.

 

[Patranus]

Passing new laws because someone didn't take the time to read the rules before they signed up for a credit card only servers to hurt those who are responsible in the form of higher rates overall or the tightening of credit.

 

[WHAMPOM]

Good, finally doin something about the robber banks. Next the loan sharking Pay Day crooks. 3000%!

 

[OCGuy]

Originally posted by: Skoorb

In regard to a car deal, normally a 0-1% finance is an alternative to something like "cash back", so it can still technically be worth paying cash, depending on the deal.

Never, ever worth paying cash unless you are extremely loaded, or have poor credit. Having cash reserves and strong credit is much more important than feeling special for holding the title to your car.

Now if you have poor credit and have to pay higher interest rates, then it is a better investment to not have a loan on the car.

I educate adults on credit every day and they are clueless. It makes me sad that because of poor credit education, they end up paying much more over the life of a loan than someone who knows the game.

 

[Dissipate]

Originally posted by: OCguy

^ This is an example of poor education.


With great credit, you can get a brand new car with 0-1% financing. Free money. You could have put most of that $13,500 in an account where you were making 5%+ on it. Instead, you tie up your cash in something that is going to depreciate.

The "save up and buy everything cash because credit is evil" is fear brought about by ignorance.

Apartments check your credit now, as do employers.

Not only did I not have great credit, but I had almost no credit history, so I probably wouldn't have been able to get a car loan without a cosigner. I just moved into my 3rd apartment, so I have not had any problem there. If I have a poor education, then someone who is paying interest on something that depreciates in value must be on the short bus.

 

[WHAMPOM]

Originally posted by: Patranus
Passing new laws because someone didn't take the time to read the rules before they signed up for a credit card only servers to hurt those who are responsible in the form of higher rates overall or the tightening of credit.

Did some one pee in your coffee this morning or do you just like it that way?

 

[Hayabusa Rider]

Originally posted by: Patranus
Passing new laws because someone didn't take the time to read the rules before they signed up for a credit card only servers to hurt those who are responsible in the form of higher rates overall or the tightening of credit.

So I have a first rate credit score, and suddenly my rates were jacked through the roof. I'm never late, and they've never gotten less than the minimum and often considerably more. I and others were punished because the financial industry was the one who was irresponsible, and not only paid to be that way in the form of bailouts, but have the nerve to also raise rates astronomically for their top tier customers.

I really don't care to hear about irresponsible credit card holders because of their bad judgment and lack of accountability.

 

[jonks]

Originally posted by: OCguy

Originally posted by: jonks
Thank effin god for no. 6. I transferred a multi-thousand $ balance way back at like 2%, and at some point, I don't recall when, I made a $300 purchase that just sits there at the 13% rate or whatever it is.

4 is a good move too. CC's on college campuses are like tobacco co's. Gotta get em and hook em young while they're dumb.

Actually credit is extremely important and can affect everything in your life. Building a strong credit history young is crucial if you plan on buying a house, car, etc.


The real problem is credit education should start in middle school. We teach kids how to make brownies and cookies in some High School classes, but not once did I ever hear about one of the most important things in your life: credit.

True enough. But since the reality is that we don't offer such educational courses in middle school, preventing the $3k in debt the avg college student accumulates seems like a well intentioned step. When we institute credit classes for 13 year olds we can lower the barriers to entry.

Note this doesn't ban teens from getting credit, it merely requires they have a verified co-signer on the acct, or take a certification class on credit.