Consumers get rare chance to try to effect changes in credit-card rules

[Zenlitened]

SAN FRANCISCO (MarketWatch) -- If you've ever complained about an unexpected interest-rate hike on your credit card, now's your chance to have your gripe heard. But you don't have much time.

The Federal Reserve is accepting comments through Aug. 4 on credit-card reform rules it proposed in May. (The deadline for comments regarding related proposals, mainly to do with credit-card disclosures, is sooner: July 18.)

Already, more than 9,300 people have commented on the sweeping set of proposed changes that, among other things, would prohibit credit-card companies in some instances from hitting you with a higher interest rate on debt you've already incurred.

Or, if you've ever accepted a "balance transfer" offer with a low interest rate, only to find that your payments go first to that cheaper debt, rather than to the higher-rate purchases you've made, that situation would change too. Under the Fed's proposal, credit-card issuers would need to apply at least a portion of your monthly payment to higher-rate debt, in most cases.

More:
http://www.marketwatch.com/news/story/consumers-get-rare-chance-effect/story.aspx?guid=%7B0508B5D0%2DA4CB%2D4139%2DB2F4%2D88D6664B35A2%7D

[annabanana]

1. This is worth kicking. It's a chance to get your two cents in

on an issue that is crushing many many people.

A question: Will these new rules effect the "late on one, rate rise on all" situation?

[sui generis]

2. the very best thing everyone can do to hurt the credit card companies

is to not use credit. Period. Pay off your cards, throw all but one away, and keep that one at zero balance. Mark all credit card offers in the mail "RTS" and send them back to the credit card company. Never acquire store credit. Try not to spend anything on credit for at least a year, even for a one month balance.

Stop Using Credit. Watch the bastards howl. They don't deserve to be in business, and quite frankly they are openly predatory . . . and you are the prey. Every time you chingching you validate their low opinion of you.

[Scout]

8. the very best thing everyone can do to hurt the credit card companies

is to USE the cards, reap the benefits, but PAY YOUR BALANCE IN FULL every month. Get a card with no annual fee, and cash back or points or other rewards.

This is known as being a credit card deadbeat! They HATE you if you pay your balance in full every month!

[sui generis]

9. actually, your vendors are still paying Visa / MC / Amex / Disc fees

so if everyone stops using credit it also hurts the global finance MNCs too, and actually gives a larger profit to those Mom & Pop stores I'm sure everyone goes out of their way to frequent while they're avoiding shopping at WalMart.

:P

[Scout]

11. good point, thanks! n/t

[jpcrecom]

12. Credit Card companies still make money

They still make money on the transaction fee that they charge to the merchant. It's still about 1 1/2% of the purchase.

The credit card industry's % of revenues:
68% Interest payments
19% Intercharge (commission on all purchases)
13% fees (annual fee, late payment fee, cash advance fee, etc)

So they do make some money, but it's a lot less.

However, the main thing that people need to learn is DON'T SPEND MONEY YOU DON'T HAVE. Obviously many times it's unavoidable, but one of the main problems we've hit in this country economically from this generation to the last is that we aren't afraid of debt. Our parents (and especially theirs of the Depression generation) hated debt - it was shameful to have debt. Now we have people buying houses they can't afford, charging everything on credit cards, etc.

I am not rich and don't live like it. While I don't have all the toys that many others have, I've also never had to carry a balance on a credit card - which is just like burning money.

[arikara]

15. Don't bother marking them RTS unless it says return postage guaranteed

they don't get returned, they get recycled. Instead, take the contents out, write a pithy message in felt pen across the application such as "piss off" and put them all into the postage paid return envelope. For good measure, stuff in some walmart fliers and really fatten it up so they have to pay extra postage.

Then, if you get fed up with receiving the same "offer" over and over again, tape the postage paid return envelope to a brick.

Edited to say: Mail the brick, here in Canada they will accept it at the post office. I don't know about the US but suspect it works the same.

[sui generis]

16. I'm with you

good idea. I think you can get in trouble for the brick thing here if I recall, but all the rest of that . . . perfect.

[jgraz]

3. k&r... and props for using "effect" correctly.

:thumbsup: ;)

[burythehatchet]

4. People should try and minimize or eliminate credit card usage.

[cascadiance]

5. We also need salaries that keep up with inflation too...

That way we don't have to keep buying less and less and sell off stuff we own to pay bills.

I think many folks would like to be free of credit card debt. But in today's economy, that's hard for many.

[Selatius]

7. That's going to require a lot of confrontation with the people who own this country.

It used to be that one person could support his family on just his income. No more. Wages never kept up with inflation. It seems inflation became the unintended weapon by which to rob the working classes.

[Triana]

6. I posted a link about this from Consumer Reports a couple weeks ago..

...it's worth letting our thoughts be known about this.

[roguevalley]

10. Joe Biden was responsible for a lot of the poo we find ourselves in

a couple of years ago when he led the charge to screw over the credit card thing against consumers. I will never forgive him.

[intheflow]

13. Kick.

Because the credit industry is, and has been for many years, outta control. Thanks for posting.

[guruoo]

14. k&r