What credit card legislation means for you

Sadly, the credit card companies are now using this new lesislation for reasons why they are NOT willing to reduce hiked up credit rates. Chase was way too quick to jack me up to a 29.99% APR, but now in order to "be in compliance" they are not lowering any rates. I bet they are still raising them, though.

Credit cards suck. But in a way they can be convienent. But the credit card companies are screwing us over.

The bill is a move in the right direction. I am saddled with debt and have just finally said.. "I will never give the bank another dime for credit" when I was refinacing my house, I pulled out enough cash to pay them all off. I am one of the lucky ones that can do this. Ever wonder what could happen if the economoy turns around and people get smart and quit using credit cards…

A friend of mine had a Bank of America visa card. Recently, she attempted to make a $2000 payment on her balance. Unfortunately, she forgot to transfer the funds to her bank account first, so, the payment did not go through. Fine, that's carelessness on her part. However, Bank of America proceeded to not only charge her an insufficient fund fee but re-categorized the $2000 as cash advance which collects a higher interest rate. She called to see if this was a mistake, but, only got a confirmation that nothing can be done about this. Needless to say, she will never do any kind of business with Bank of America again.

This is pretty criminal of Bank of America. I am very glad that the consumers are getting some kind of protection.

Dear Rochester NY, The exact same thing happened to me. When I asked them about switching my rate to adjustable and what it would be the next month, the lady on the phone stated that it would be "prime" plus whatever they decided that day. I said "So next month you could charge me 50% interest?" She stated, "Well the maximum allowed by law is 69.9%. So yes we could."

I have heard that this does not include credit cards issued in the name of a business, even if the business owner has personal responsibility for payment of the bill. If you're a business owner, better check this out.

We have a Capital One account which had a fixed 9.9% rate. We have been more mot than the minimum weeks ahead of time to lower the interest rate. Today we gor the most recent statement and the interest was jacked up to 17.9% with no notice. When I phoned they insisted they sent a notice (they did not) So now I am paying ad addition $70.00 monthly in interest with no appeal rights whatsoever. I am outraged.

I would love to see a cap on interest rates for cardholders with a good payment history. Most credit card home offices are in states with no caps and therefore anywhere they do business they can get away with following their "home rules". Also, have you noticed that the new interest rates are not a set amount but tied to the Prime Rate, which is at 10 year low. When Prime goes up again expect your interest to match (another 3% or more).

You know with this new credit card work up it doesn't help us at all. They can still jerk you around it will just take them a little longer. If your at 7% they can still raise you up in interest rate. And all you can do is say you don,t want the new rate and have an option to pay of amount at the lower rate yes but you no longer can use the credit card at the old rate. So what did the House and senate do for us not a single thing and the credit card companys still have you where they want you. So big deal for nobody. Brenton Smith

There still seem to be a few people who think that because they have not been hit with fees, credit cards are good. The reality is the card companies somehow missed screwing you over. They will eventually get to you and you will see.
I have good credit and have never been late on a single payment but there have been times when the card companies have screwed me bad. However, it is not who is getting the short end of the stick; it is about transparency in lending. Doesn't matter if you have eyes and a brain: show me one guy who understands the credit card fine print.

I think there are three types of credit card consumers — 1) those that pay off their debt each month and never pay cc fees, 2) those that will get into trouble with credit no matter how much we do to protect them, and 3) the rest of us.

This bill will give the average credit card user (3 above) a fighting chance at paying off their debt in the time period they had originally anticipated. Credit card companies have long surpassed the "nickel and dime you to death" phase and reached sheer rip off mode. Due dates are constantly changing, and a payment that posts one lousy day late can result in late fees and a huge hike in interest rates. No matter how you slice it, that's trickery and just a plain ol' rip off.

This is the best legislation to come out of Washington in a long time. I think it would have taken many more years to see this bill pass had it not been for the banks' involvement in our financial crisis, their need for a huge bailout, and our new president who was willing to put the people before the large corporations. That is a refreshing change that I look forward to seeing more of!

Think the CC companies are going to start charging interest starting on the day of purchase? Think that the CC companies will stop offering cash back? Air miles? Balance transfer offers? etc., etc., etc.?

… Not if they want to get their 3% of the purchase price from the merchant!

I'll simply use my debit card or cash until one of the CC companies offers the same deals I get now!

I've had them threaten massive rate increases on a few of my accounts. The reason they gave? "To maintain profitability of your account"! Translation: We're not ripping you off enough. Let's squeeze you til you scream! I called and threatened to close the accounts. One of the accounts was restored to the original rate…. two others were set LOWER than before the increase… go figure.
The only problem with the bill is that the CC companies will have 9 to 12 months to max out their abuse before we get the upper hand

Richard from Bellingham is correct; the legislation allows interest on all purchases to start accruing on the date of purchase. Another example of shifting costs and redistributing wealth. Thanks Senator Dodd.

Most people agree and most people don’t, ok whatever I think is a good idea that you should to be 21 to get a credit card, I am 27 and I have some debt not a lot but imagine being 21 and having $20,000 debt if you was to open an account at 18 it does happen. The truth is it is so much easier to get you’re self into debt then to pay your bills on time especially when you are young and competing with your friends is better to hold it off and wait, so you are able to buy a house have a car and live dissent life with NO debt, not living with your parents all your life and have creditor call your parents house 20 times a days cause you own $20,000 worth credit cards. Good Luck people.

I had been trying for nearly two and a half weeks after making a small purchase with my amex card to pay my bill at their web-site . I had received the product that I had purchased and it was documented on my statement . Each time that I would click " pay bill " I would get a " no payment due at this time " . The closing date was May 3 , 09 . Finally I went to my bankers web-site and typed in the address of the add payee information . The payment was received by Amex from my bank May 20 , 09 . I'd rather and do use cash for 99% of my purchases . I use my credit cards to make small purchases just to keep my accounts active and to pay off the entire balance before the payment is due . It has come to the point that credit card holders have become hostages at the credit card industry's mercy. That's even more true if you carry a large balance . Even the 90 day same as cash on large balances probably have or will disappear since the cc industry have inflicted ludicris practices on responsible people who pay their bills on time . I've seen credit limits slashed on some of my cards ; all having zero balances . I'm not a hostage as long as I don't carry a balance with them or close my account . My excellent credit rating will stay in tact . By not having any debt and having saved my money using cash to pay for my purchases will always be my first priority .

It's about time, while some of the post think that this is Goverment intrusion. The credit card industry has screwed people over for years. I personally know if people who have be hit by those unintentiomnal gotchas. For instance You sent your payment so that it would arrive ON TIME. It sat on someone desk to be processed, but the person when home. By the time they did your payment, it was one day late, so they hit you with a late fee. Because you showed as late on making a payment not the up your interst rate, then because of Universal default all of your cards uped your interest rate.
And there was absolutely NOTHING you could do. So I say Bravo.

Now perhaps people will learn to give up credit cards and live on the cash they have…. the way many of our great grand parents did.

My greatest fear is one that was hinted in a recent NY Times story and discussed on one of the network morning shows 2 days ago – to boost the credit card companies' falling profit margin that will be severely strained by this new legislation we will now start accumulating interest on any purchases from day one instead of the usual 2-3 week period currently the model.

Well, one other thing that I just noticed. Discover moved my due date from the 19th to the 15th starting next month. No explicit notice except on the bill. I have had a autopay in place for years to cover the minimum in case I forgot to schedule the full amount.

Bet me they are just seeing how many people make a late payment and how many fees they can collect when they shift it around.

It is about time that solicitation of cards to college students is limited. I have a son who attended a university in Philadelphia in 1994 who was offered a Discover card. (I know the practice…I worked for a university and credit card companies come in, set up tables, and offer free T-shirts, mugs, etc. for signing up.) My son had difficulties making the payments on his student income and FIFTEEN years later Discover is still calling my home 3 to 4 times a day even though my son has long since been gone from home. It sure seems like Discover would have written off the amount due a long time ago. Consequently, I will never get a Discover Card.

Some people are suggesting that the CC companies close down the accounts of the "irresponsible" users. This is the last thing the CC companies would do, as they make most of their money off of the fees and interest they charge these people.

Now getting rid of the "convenience" of over-the-limit fees and universal default are great ideas. However, that does not absolve someone from being irresponsible. There are always (at least) two parties involved in any transaction and both are responsible to the other.

Are we forced into having a credit card. No of course not, however, because of how our economic system is designed there must be more debt issued each year than in the last. This is the heart of the problem, not that credit is available to all.

In "thinking" through the results of this legislation, what are possible effects? Banks are already cutting the "available" amount for a consumer, cancelling cards and raising interest rates. Who is most affected? Retailers! Whether we like it or not the country runs on plastic and retailers survive on plastic. So everyone cut up your credit cards, get out your check book and cash. See what happens to retail sales, the banks that depend on fees. ECONOMIC CRISIS STAGE 2. Investors in banks will bail out resulting in Wallstreet Crash #3 and the Obama Machine will take over ALL the banks, BAIL out retailers and the Obama Machine will own all the businesses. Did someone say we live in America? I can't see her anymore.

After age 18 people should be expected to start behaving like adults. I am 20 and I have had a credit card since I was 18, and I have never made a late payment. I understand trying to protect the consumer, but what right does the government have to take away my freedom, saying that I cannot get a credit card just because I am under 21?

People shouldn't need the government to protect themselves from their own stupidity. What is happening to this country, anyway?

My goodness, what a lot of b@tching!! For me, these provisions are long over due. Until the past 9 months or so, my FICO score has been mid to upper 700’s. Now these CC companies have cut my available credit by more than half which in turn as LOWERED my FICO score. Now that my FICO score is low my interest rates have gone through the roof!!

Since I feel that most of the anti CC changes are actually CC company employees, how do you justify such bull—? Cut my credit in half…oh by the way now you fall out of the excellent category so now you have to pay a higher interest rate (went from 8.9 to 24.99 on one card)!

Just for the record…all my CC are linked to my checking account for AUTOPAY…there has never been a late fee except when BOA charged a late feel because my due date fell on Saturday and didnt post until Monday!! WTF? (they did correct it) Yes, this was using AUTOPAY.

Charge a yearly fee to have a CC? Fine! Keep pilling on the fees, increasing interest rates and I think you will see a large percentage of people stop using CC. Think it cant happen? Look what $3-4 gallon gas did. No one thought we as Americans could reduce our fuel consumption!

Next step…keep companies from having free will access to our credit reports!!

We can all feel happy about the bill having been passed and helps consumers (really?). We all we see the backlash of this legislation. Unfortunately the legislation does not kick in till say Jul'10. Many of us might have already experienced and others will shortly see:
- Account closures
- Line reduction
- Interest rate hikes etc

before the legislation kicks in. What this will do is completely make cards out of reach of consumers with marginal or even good credit history and drastically alter the rewards that one gets for using these cards.

New cards after Jul'10 will be fewer, fewer promotional offers (to park balances at low rates) with much higher rates. In an economy when we are asking banks to make credit available not sure how this helps especially when consumer spending accounts for 70% of our GDP.

Don't bash this bill, folks. It shocks me that so few understand how our system of finance and credit works. The Federal Reserve (our biggest creditor) is neither Federal nor a reserve, if you don't believe me look in the phone book. Its in the business white pages next to Fed Ex. Or ask the Supreme court, they'll set you straight. It's refreshing that our government has in some small way asserted its rightful control over credit and its issuance… like in the Constitution. Stop taking things at face value and for God's sake stop pointing the finger at thy neighbor.

I paid off my balance in full every month so I don't have to pay these bankers a hefty interest rate and deal with their conveniently placed fine prints. The bank's method of payment allocation boarders on fraud. How many consumers actually know this is the way bank applies your payment and calculates your interest? Banks are all to happy in giving credit cards to people who can't afford them and keep those people paying interest indefinitely. This is a good legislation to protect consumers and eliminate shady practices. If the bank wants to be greedy and jack up the cost to the consumers, then I am simply going back to debit card, checks, and cash.

This is quite possibly one of the most intelligent-seeming bills I've seen in a while.

I agree with many of the past posters here that people often go into debt out of NECESSITY, not because they are lazy no-goods sucking off the teat of society. If you do not have the support of family, have a long-running work history (and even if you do, sometimes), or do not already have any sort of assets (like me — a 21-year-old forced to work her way through college and still somehow meet living costs), it can be hard to live without at least SOME credit.

I have three cards that I use regularly — one of which gets a single large charge perhaps every one or two years; I have had these cards since I was 17, have ALWAYS paid them on time, and have always paid off the balances within a reasonable amount of time. I have also been fairly OCD about my credit score. Yet, I am still getting gouged with 22% and 25% interest rates and can't seem to get these to go any lower.

The only thing about this bill that might come back to immediately bite me in the butt are the age limitations. I'm 21, in college, head-of-household, and on my own, so I'm wondering how this bill will effect my attempts to get additional credit as I need it (even with something as innocuous as store cards) or if it will mean I will lose any pre-existing credit?

I am a conservative Republican and even I say legislation is needed to help control what is happening with credit cards. I am in my 40's making a nice salary. I pay my cards on time, more than minimum balances every month and have never run my cards up close to the limit. In the past month, I've received notices that my rates are jumping from 9 to 15% on existing debt and one card went to 23% – 'to maintain profitability' on my account. My limits are being reduced on 2 cards and the same company has been bumped my limit up another 20k on a 3rd card – obviously to entice me to move my balance so they can again raise rates on that card even higher. When contacted about the increased rates, the company rep told us 'credit cards are not made to carry a balance on – you can just pay it off'. This from the same company that just sent me 2 bills with 'no payment due' this month – because they are giving me 'the flexibility to skip a payment' this month – all the while acruing at thier new, higher interest rates. Watch your bills – they will eat you alive until some kind of legislation goes into affect next year.

This is the stupid. use a little judgment and read the fine print. don't spend more than you can pay back in a reasonable time. its not the hard to figure out.

It’s about time Obama stepped up to help hurting American’s. Until a few months ago, I was able to pay my monthly card payment, then I purchased new flat screen TV ($3K) plus a pimping surround sound system ($2K). All my bros had sweet systems, so I thought it was time for me to get one too. Then my lame boss at Walmart cut my hours and I had to pay for my girlfriend’s abortion. So I was a little strapped for cash and couldn’t pay my credit card for a couple of months. Then the CC company jacked up my rate from 8% to 25%, now I’m screwed and will never be able to get out of debt. I talked to my bank about getting a home loan to pay off my credit cards, but they said I didn’t have any equity in my home…I was planning on getting a higher paying job, but I haven’t been able to find anything, so I’m not going to be able to pay my mortgage, even though my mortgage broker said I could afford a $350K house. And my g-friend is going to flip when I tell her we can’t use the tickets to Aruba cause I don’t have enough credit to pay for the hotel. With all the banks getting a bailout, I want my bailout now…all I need is a $100K to get back on track and I’m good for it. I say to Obama, stop giving money to the banks and give it to me. Everyone else is living the high life and the way I see it, I’m entitled to the high life too.

Dear Chris in Brownsburg: If you can't see why these regulations are necessary – to protect responsible customers as well as the naive and unsavvy – then perhaps you should attempt to understand how the credit card industry actually works. Most of the regulations set in place are there to protect customers from being bent over and given a bit of
how's your father' by the credit companies, not to absolve people for their irresponsible spending. This is not, on any level, 'mothering'; this is David FINALLY standing up to Goliath.

If you have never been treated unfairly by a credit company or some other entity that has the power to transform your life into a living nightmare, then you're lucky. Two snaps in a circle. The problem is you are a minority in this situation, because these companies have been playing dirty for years and have created and nurtured the credit crisis. You should be GLAD they are being forced into playing fair! While you may have a good handle on your bills and finances *today*, it doesn't mean you will always have it. And if you lose that precious grip, they will swoop down like the vultures they are and give you a firsthand taste of injustice. And won't you thank your lucky stars the government has protected you from having your world torn apart by unscrupulous corporate America?

Its easy to say people who are struggling financially have no one to blame but themselves, but there's a not-so-thin line between irresponsible and disadvantaged. You should really know the difference if you're compelled to give commentary and criticism. Otherwise you're just coming off as a whiney pain in the ass.

I think these bills are good. Credit cards are like drugs. They are fine when used wisely for the proper purposes, but you can become dependent on them if you abuse them. The credit card companies have been making them easily available to those who are least able to handle them for years–much like drug pushers. Once you're hooked, you're hooked, and the practices that these bills seek to reform make it almost impossible to kick the habit. Yes, people who abuse credit cards are victims of their own poor choices in most cases, but there is plenty of blame to go around, and a lot of it goes to the credit card companies who are all too happy to force their victims deeper and deeper in debt and keep them there.

13 able to be pregnant
14 to drive
17 to die for your country in war
18 considered a adult
18 to vote
18 to be executed for crimes
18 to marry or younger
21 to drink
21 to have credit
35 to be president
and credit cards company's are out of touch with rules?

More liberal legislation that neglects personal responsibity in favor of rewarding the irresponsible. No surprise since we are already paying for these peoples mortgages why not add the credit cards. The only thing we need to subsidize for them now is the car loans for vehicles that can't afford and everything will be covered. Hopefully, the banks will close the accounts of the financially irresponsible to reduce risk instead of charging the financially responsible. People can't run up charges they can't afford if you close there account, fortunately the card companies will be given 9 months to do this, so I hope they start shutting people off immediately. I use my credit responsibily, if I have to pay an annual fee because some idiot can't control their spending I'll close my account. Of course if the do close people's accounts, I am sure the congress will step in with additiona legislation to force banks to give credit to people that the banks know won't pay them, why not?

There are no such thing as "free miles" or "rewards". Each card has a different processing fee associated with it and costs merchants different % for the transaction. A basic no frills CC might cost a merchant 2% while a CC with rewards might cost a merchant 2.5%. As you are probably aware, merchants rarely, if ever, eat those costs…they are passed on to the consumer. This is why if you are making a large purchase you can ask if you can get a discount rather than paying with your CC.

I think Discover has the highest rate at over 3%. Just saying that nothing is free and CC companies certainly don't pay for those rewards…all consumers do.

This is progress people. Not perfect, but progress. Banks are in business to make money but this is a huge step in lessening the greed that's out there. This makes the banks responsible, but the person that used the card is also responsible. The ideal situation is that maybe the consumer using the card can understand what they are getting into and the banks can't stick it to us as much with hidden agendas. To the comments below, Capital One and Chase are both going to stick it to you so get away from them – far away. and thank you to the consumer activist groups that moved this forward because I guarantee you it wasn't initiated in Congress.

Why are credit card companies being blamed for others being irresponsible? You sign the paperwork agreeing to all of these terms. If you are over your limit, your fault and you should pay. Credit cards are not a right and you are NOT forced to have one. If enough people decide not to get a card because of a ridiculous fee, then don't get a card and don't let Visa or Mastercard have the profits of its use. It is completely up to you to be responsible. Do we really need the government putting this motherly law in place?

When did they decide to release the terminator on the credit card companies? what the house and senate did is great! keep them honest! and whoever says its socialistic, I say, no its called, protecting the consumer from predatory credit card companies!

President Obama has another group of voters now. If I am stupid and charge a lot money, let us screw the ones that pay the money they are the minority now. This is the face of redistribution of wealth. I beieve we should feed the poor and help the handicap, but greed and stupidity are not part of the deal.

I am single, unemployed, and have about $130,000 in available credit. That's not a typo — I have $130,000 in available credit. My credit balance is a mere fraction of what I have been provided, but can you imagine the trouble I could get in with this credit limit? I have never asked for a credit line increase, but banks like BofA, MBNA (now BofA), and Chase have been very "generous" in providing this credit line to me. Unfortunately for them, I know how to live within my means, and only leave these accounts open to help my FICO score.

There is one provision that was overlooked here. My credit card companies send me checks almost every week. They urge me constantly to use my credit line to pay down other bills, to take a vacation, etc. I always shred them, but it really bothers me that checks with so much value are being sent to me on a regular basis, even though I never ask for them and I never use them. We need to put a stop to this tactic too.

Other than that, I must say that I am very impressed to see this action taken by our government. Thank you to President Obama and his administration for standing up to the credit card companies and doing the right thing for consumers!

Credit Card companies are famous for retroactive charges only when it is in their favor.

Re: John, @ 5:58

A credit card is a safe and convenient way of paying when away from home?

Kinda makes debit cards pointless then, eh? Methinks you are mixed up.

"Save money? Live on what you make? That’s for fools and losers

Posted By Bud, Atlanta, GA: May 20, 2009 5:50 pm"

Seriously, saving money and living on what you make is for fools and losers? Talk to a few millionaires in the world, ask them how well they are doing by living on what they make and paying cash for everything. I have personally gotten rid of all credit cards and live only on cash and a debit card. For those who say you need a credit card to travel, debit cards work exactly the same. Life has never been so nice now that I get 0 credit card bills and each month I watch my savings skyrocket.

Good reform that may benefit both parties. A combination of socialist and capitalist theories is what we wanted since a long time. Even banking sector needs a reform like this. Probably this is the first bill that explains terms in clear language. Stimulus packages were just garbage words dumped onto paper overnight! Hope our leaders keep doing good job like this for all critical issues faced by America.

This is GREAT news! All of the provisions make perfect sense, and they are long overdue. As a consumer with a strong credit score, much of this won't help me personally. But unlike some of the selfish posters here, I am well aware of the credit card tricks and scams and I can sympathize with people who find themselves in impossible debt situations because of credit cards.

The credit card companies have threatened that if this legislation passed, they will have to pass on annual fees to all consumers. Great, do it! You will be doing consumers a favor by forcing them to think long and hard before opening yet another credit card account. It has been way too easy to open a new account, transfer an old balance to a lower interest rate, and then charge up the original card. And for that very reason, I think you will find that it was just a bluff on their part.

Credit card companies have also threatened to restrict credit lines. The reality is that they were already doing it. My small business has a credit line with BofA, but they decided to cut it in half without notice and despite our strong history with the bank (plenty of cash in the bank, never overdrawn, never late, never carry a high balance on a card, etc.). When I called to complain they told me that "it wasn't personal" and that they simply did a broad sweep on business accounts. They quickly reinstated our credit line, but only after an embarrassing shopping trip in which my card was declined (BofA didn't bother to warn me of the credit line cut) and a frustrating phone call to them. Amex did a similar thing to us, in which they decreased our daily spending limit to a point where we can no longer use our card at Costco (the only place we ever used it). The worst part about these random credit line cuts is that the credit card companies have the power to ruin your FICO score in an instant by increasing your debt to credit ratio.

Credit card companies have been making a killing off of consumers for years. With these provisions, they will now make a more "modest" killing, but they will survive just fine. More importantly, consumers — and especially those new to credit or vulnerable to their predatory tactics — will have fighting chance. And for that I am a huge fan of this legislation. It's the best thing I've seen come out of Washington in a very long time!

dude…this a reform that had to happen from years. most of the credit card financial institutions have earned out of the charges, fees and penalties….paid thier big bosses huge bonuses and now when its time to payback thier customers they are thinking that they are victims….so insane.

This is going to be a horrible thing….

One credit card for students is understandable.

But everyone has cried for years because of the way credit card companies are "bloodsuckers" but you are in for another treat. No one FORCES you to use a credit card, run yourself into more debt that you can pay off, and then start paying late.

Now because of the people who pay late and run themselves into debt, the people who use credit cards for convenience are going to have to pay finance charges, annual fees, and other crazy fees… Yea, because of the idiots who pay late and live off their credit cards.

I HOPE to god that the credit card companies just close down the credit lines of the people who have been late more than once in the last year, who live off their credit card, and who have FICO scores under 650.

Good job to all of those who screw stuff up, you royaly screwed it up for the rest of us!

-Joe

To Jay Z Brooklyn:

Yes, personal responsibility. Were you forced into using a CC? NO. Were you forced into not reading the terms and limitations? NO. Did you ever think, "if I lose my job, can I pay off my credit cards without losing my house"? NO. Life isn't fair and I, as a fiscally responsible individual, am not here to bail out private companies, pay tax dollars to help homeowners in trouble, and/or listen to people whine because their over-extended credit cards can no longer be used. Call me cold-hearted.

As a banker and a lender I will tell all of you that while most of you like this bill now (those rotten banks…) every one of you at some point IN THE FUTURE will want (or need) credit. And when you are told NO who will you blame? Well the rotten bank again. And who should all you people with short memories blame, why your new socialist government. Because it starts small and grows. And this my friends is only the beginning

What took you so long is my question. Credit card companies and banks rely on middle class Americans for those fees so the filthy rich can receive free air miles.

This is about a government protecting its citizens from loan-shark lending practices.

Next – How about taking out Pay Day advance businesses? They are a pawn shops.

Heavy debt, no jobs, no assets, no credit – this is what George W. Bush has given to middle America – Obama – in office since 1/29/09 (4 months) is saving the future of all Americans who make this company work through taxes and labor.

Thank you Dave, Clifton NJ for being part of the problem. Rosie, Springfield MA – RIGHT ON, GIRL!!! Amy, Arlington TX – you took a lot of the words right out of my mouth as did Jason, the economist from Carbondale IL.

My paycheck hadn't gone up in over 5 years and then I was told that I had to take a 7% pay cut, effective immediately. Sadly, none of my bills went down by 7%. My employer is chomping at the bit to send my "high paying" $60,000 job to some third-world country so they won't have to pay medical, matching social security, unemployment compensation, etc. but the CEO and all his minion-managers all get their hefty pay, bonuses and perks. I don't see any of THEIR jobs going overseas.

Banks, like insurance companies, are nothing more than legal organized crime. Question: Any bank CEO's done the Lee Iococa? No. Why? Well, because they are not IN this recession with the rest of us. They expect/demand to be bailed out because of their bad decisions and then penalize their customers because of their "bad decisions". It's criminal.

This bill does not go far enough and needs to be retroactive to Jan 20, 2009. Interest rates should be capped at 12% for the riskiest and at no more than 6% for those that always pay on time. The credit bureau reporting rules are the next thing that need to be regulated by our Government. One late payment which might not even be your fault, should not be the start of a perfect financial storm that sinks your financial ship.

Maybe everyone should just declare bankruptcy at the same time. A nation-wide financial mutiny. Millions of "play by the rules" middle-class Americans saying "I'm mad as hell and I'm not going to take it any more!" to the greedy bankers that got us in this mess in the first place but still expect their slice of our American pie. Maybe THEN the banks will become the good corporate citizens they say they are instead of the rapers, plunderers and pillagers they currently are.

To those that apparently live very charmed lives where nothing ever goes wrong, I wish everything would go wrong at the same time – job loss, car dies and cannot be revived, major medical condition requiring surgery (and with no insurance – remember, you lost your job), savings stolen (oh wait, that's probably already happened), etc and then maybe, just MAYBE you'd be whistling a different tune. A lot of people got into debt out of necessity, not want.

Finally, will you people PLEASE learn how to spell and/or use the correct word? Many of you sound like idiots (and I'm not just talking about your position on the issue).

Why would anyone carry a payment? I was taught at a young age if you charge something you need to pay for it at the end of the month. I have been doing this long before I made a decent living. I don't feel sorry for people who charge Starbuck everyday and then relize they put themself into a 10K debt for foolish purchases. PAY YOUR BILL!

This bill is outrageous and socialistic. Credit Card companies are the victims

It's about time something was done about these usurious bloodsuckers. They have been feeding off consumers for too long with deceptive practices, the ability to unilaterally modify your contract at will, and bascially free rein do anything they can to push you into a corner that maximizes their profits with absolutely no concept of "the customer", since to them we are all only cash cows for them to milk.

I have had my bank card for 21 years and have never paid a cent of interest or an annual fee. I paid all 252 statements in full by the due dates. I am concerned that this crappy piece of legislation will cause my card issuer to start charging me interest on my CURRENT month's purchases. I say let the folks who use their cards as a continuous line of credit pay interest through the nose. A credit card should be what it was originally intended to be: a safe and convenient method of paying when away from home – not a permanent loan.

None of this addresses the credit card company's practice of lowering your available credit in order to raise your interest rate.

Bank of America is great at this… They will lower your available credit after you have paid the card down, which puts you in a worse credit situation. They will then raise your interest rate to reflect your worse credit situation, the one they created by lowering your available credit.

This will continue forever.

Just received an increase in a credit card where I have made payments far in excess of min. payment. I guess the banks are trying to beat the bill that will go into effect. My increase was from 13% to 17.5%. I have never been late. Penalizing credit card holders who pay on time and in far in excess of min. payment is unfair. I plan on paying my full balance and avoiding charging but will still keep the card open & available.

Now because others cannot control their finances I will get to pay an annual fee and interest from the day I use the card. Once again the government gives us more negative reenforcement. Pay your bills? Save money? Live on what you make? That's for fools and losers

Nobody in this world need credit card

Congress now needs to address the predatory student loan lenders!

Not even the mafia loan sharks do what the credit cards do. I am all for spending responsibility, but you cannot keep changing the rules so the we have to pay forever. Almost sounds like legal slavery.

American Banking Institutes are the largest Terrorist Organization in the world. They are the basic reason for all this mess. If you get 1.5% on your savings account and pay 14-29% on borrowing money (credit card) then why save? Without savings by millions of Americans the GREED of banks takes over the economy and as you see, destroys it.

This is government coming in to protect the people who cannot manage their credit/life from the predatory banks. Not sure why so many people are complaining. I liked the under 21 rule the most – just like a person under 18 cannot vote or drink or drive, then how come someone who is under 21 can get a $5,000 credit limit that may impact their long term financial future ?

Great stuff ! Good job, Obama !

i can understand limiting the amount of credit that college student's receive. when i was 18 i got three cards with minimal balances(BofA, CapOne, & Citi)It didn't take me long to learn that credit cards can spell trouble. I went to my parents and they helped me out(I am sure many of you can relate to this) I was able to salvage my credit rating and have maintained it since, I am now 33. American Express has become my card of choice, and i pay it off monthly, sometimes this card is more than my mortgage. But I learned to live repsonsibly. That is what it is going to take, living within our means. I understand the bad economy and pray for all those affected.

Companies can make a profit.

Here take the credit, it's almost free.

Once you are extended I'll raise the rate, so you can never fully pay. I own you, kinda like a crack dealer. You never meant to get hooked, you had a family emergency, but now you are mine. You could have paid if I did not change the rate, but I own your future now, you work for me. You work too hard to try bankruptcy, you will be paying me forever.

Yes founded on freedom. How to be free from debt? One of the first nations not to hold the debts of the father to the son. One of the first to offer protection from loan sharks. Yet max interest allowable by law plus fee's each month is ok. The loan shark would have been better.

This Law needs to go into effect immediately!! Why are they waiting 9 months before these changes go into effect.

I have had interest rate increases from almost every card I have in the last 3 mos!! I never pay late, always pay more than the minimum, etc. Why are my rates going up?? Because these greedy backs don't feel they are making enought money on me with the interest they are getting, so why not make it difficult for me to make my payments by raising my interest rate on existing balances!!

For all the ignorant morons out there who feel this is fair and think it should be allowed, I HOPE SOME DAY YOU ARE DRIVEN SO FAR INTO DEBT YOU WON'T KNOW WHAT HIT YOU!!

if someone thinks that they can live without credit card this day and age, i don't know where they are from. travel with out a cc, you will find out. i am glad for a congress which puts people first and speaks out for them. it is refreshing. i don't think the majority who wrote their comments for this article care for their fellow human being. selfishness is evident in many comments. a bit of good karma doesn't hurt.

Highly recommend people to start using http://www.mint.com if you are serious about trying to save money.

Site helps you track your needless spending.

I would love this CC bill if I knew the CC companies weren't going to get rid of their rewards programs and implement more monthly/annual fee's to counter it. Sucks for hte people who pay their credit cards off, like me.

Becky, Michigan:

Do you know when did Noah build the Ark? Before the rain…
So "living withing your means" actually includes building emergency fund when times are good. Sounds much less fun than choosing color for a new car, I know.
(I have been laid off last year, and I did not have to live off credit cards till I got my new job, so I am talking from a personal experience.)

Becky in Michigan, If these poor people who lost their jobs or were laid off and had a CC,and were spending it on other things instead of living with what they had, then they shouldn't have been paying all the charges and fees and should have put the money saved from these in the bank and save for situations like these possibilities. Besides, wouldn't that be illegal, charging things on a card, knowing full well you are unemployed/laid off and know that you wouldn't be able to make the payments? No sympathy here!

Praise the Lord. Despite all our begging our daughter got a credit card right after she graduated. She was 18 & wouldn't listen. She was late twice – both times because she waited until the last minute & their internet or phone service was down. Now, with no notice her rates are astronomical & so is her balance. They just kept increasing her available balance. Now, not even 20 she is weigh over her head. Thanks to all who made this wise decision.

This is long overdue. Never since the mob has run things has a group of people (cc industry) had such control over a country. Between crazy mortages and crazy credit lending practices, this country has hit a low. The banking industry preys off of the "buyer beware concept" and does everything it legally or illegally can to make a buck. That isn't actually the real problem in my opinion. The problem is that the American consumer doesn't know the rules. And when you think you do, they change them to their benefit. I am a captialist at heart, but the goverment has the only power to bring these terrible practices under control. In the end, were all going to get screwed one way or another, but at least these actions will slow down there ability to make money off of consumers at ridiculously high intrest rates, fees, and threats to ruin your credit. This is the first real thing our goverment has done for us in a while. Something everyone but the poor banking industry can get behind.

I paid two credit card bills at 5pm CST once. Whoops! Issuers required that they be paid by 5pm EST. $29.00 late fees on each one. That was in the fine print – you know – the print that takes an electron microscope to read…

A little too late… Capital One just sent me a letter yesterday raising my rate from 9.9 to 22.9% ! ! ! !

Luckily the balance is small.. but what about all the others.. they showed their hand on this one giving the card companies months to enact these higher rates before passing the bill.

I laugh at all of the people on this forum who call themselves responsible because they pay off their credit card every month. In a sense, you are no different than any other of the individuals posting in this forum when it comes to using credit cards. You say you're responsible because you pay it off and just use it for the rewards. Then, a day comes where they charge you fees out of the blue and you'll be back here complaining about how the world is after you. I'm sorry, but using credit cards for free miles you'll never use or some cheap 20 dollar free gift is not worth the hassle. I've stopped using credit cards and relied on cash and debit and I'm never going back. Build up an emergency fund, when an emergency comes along (need food, gas, blah blah blah), use your EMERGENCY fund, not your credit card and you'll be better off. "responsible credit card users" is an oxymoron, there's no such thing.

I agree with a lot of you that people need to be more responsible with their finances. Although some of you are being a little harsh.

College students are heavily targeted by credit card companies because they know most students are desperate for cash and still learning how to manage their finances. This is immoral. I have no problem with any company making money but there is a reason laws are in place to keep businesses ethical.

So before any of you place the blame on the consumers remember the college students who had to choose between opening a credit card(s) to stay in school or drop out. Student loans don't cover everything and the majority of Americans are not raised with a silver spoon.

Wait a second – did anyone catch the last lines of the article – "Many of the provisions in these bills are already addressed in the Fed’s credit card regulations, which are slated to take effect in July 2010"? So what was the point of the legislation – to move up the implementation date by a month, or to score political points by passing legislation (and I'm sure signing it with full press coverage) instead of just letting the Fed quietly do what it was already going to do? What a waste of time.

Kudos to President Obama and the Congress! I have 2 credit cards from Bank of America. I've always paid the minimum or higher every month on these cards and all my debts. No late payments on my credit file – ever. There is only years of on-time payment, along with an excellent and good credit rating (depending on the credit Bureau reporting) and credit scores in excess of 700. Bank of America raised the interest rate on one card from 9.90% to 18.99% on my outstanding balances. I called BofA and inquired about the reason for the rate increase. I was told the reason is that I have high debt. The practice of increasing interest rate on outstanding debt is unfair. Glad Obama and Congress stopped those leaches.

Anyone who ever had to rent a car or a hotel room knows that you do NEED a credit card. In the real world people use personal credit for business and then expense these on reports, getting reimbursed by their employer. By reducing lines of credit you are reducing business spending which is in no way good for the economy.

It’s about time!!!!!! Credit card companies have been taking advantage of consumers for years. There has to be some sort of regulation or these companies will do whatever they please, which got us in this economic crisis in the first place. It’s about time!!!!!!

I think the credit card companies saw this coming. I pay more than minimum due and never late…I have called trying to get an answer why apr is so high..don't get any answers….the companies should be made to lower the rates they have raised the past year…grrr..I'm mad!!

I think its about time the government has stepped in to regulate the strings that come attached when opening a credit card. 'Credit' is what this country depends on… which is why the stimulus package was pushed for… to continue the flow of credit.

For those of you like Bruce ( from Indiana ) who are ignorant and have more than likely never left their home town, get out there and see what the world is made of… 95% of what you find are decent people struggling to compensate for fees and penalties when they are already down in the dumps… In New York City Alone, the poverty line is now at 75K a year. I am in the software industry, so thankfully i am surviving… but i really do feel for the working households who pull in less than I do… Somethings' got to give… cutting a cell phone and/or cable service is not the answer to the injustice done to those who are raped by high interest rates and unfair practices.

Capitol One jacked up their interest rates back in January on me yet I've been paying my bill on time for years. Then Capitol One got a bail out, yet Allied Interstate who was contracted by Capitol One to obtain "payment" continued to call me at work after I repeatedly told them not to contact me at work and to put their requests in writing. I told them I was aware of the Fair Credit Law, and got hung up on but the calls didn't stop. I'm so thankful that congress and the President are putting a stop to this. I realize there are customers who never pay on time, but I do. It should be a crime to mess with people who actually pay their bills on time and who have good credit scores. Revenge is semi sweet. I learned today that Capitol One is laying off some employees. While I pray all of those employees who were fired find employment soon, I am not particularly upset with the average Joe employee at Capitol One, I am upset with the big-wigs who decided to jack up my interest rates while enjoying the fruits of my labor with a huge bail out. Hey capitol one…whats in your wallet?

I should clarify that first comment – a publicly traded company is still privately held by its shareholders. That's what makes it a private business.

Rosie – thank you for demonstrating your basic misunderstanding of economics.

A publicly traded company is not "public."

Taking TARP money doesn't subject businesses to gov't regulation. It just subjects you to having to pay back that loan.

Economic terrorism? Please. No one made you invest in stocks. They are, by their nature, risky. That's why they can earn 8-10% in some years. Because they can also lose bigtime. That's what the 1920s and 1980s taught us.

To whoever thinks only those with balances get thier rates hiked, think again, I have never carried a balance and they still raised my interest rate this year. I dont care of course cause I pay the balance monthly, now if they start charging interest as soon as I use the card then they will go into my safe and out will come my CASH!!!

I dont plan on buying much anyway, wouldnt want to stimulate this economy.

My chase credit card have 9.9% APR on it and I don't use it again! but I still have to pay off my debt with 9.9% APR on that credit card!

Bye Bye Chase!

I have to admit, Obama is working his ass off, and it is starting to show results for the American People.

Which is refreshing after the past 8 years of corporate handouts and screw the little guy policy.

The one thing that these bills don't seem to even consider is the time from the billing date to the due date. We just received a note that states that when the balance is paid in full the interval is 20 days if youhave a blance the interval is 25 days. They have to post the payment as soon as it arrives especially if it arrives on the due date. But why, if you can track the day you sent the payment, the day it is posted to your account and find that it averages 3 days, as on one of our accounts, why does it take 8-10 days for the bill to reach you after the posting date? Is it sitting in the mail room for 4-5-6 days before being sent out? If the company wants the payment by a certain date they are responsible to get the bill to you in time to get it back by the due date. Their instructions state that you should mail the payment 7-10 days before the due date. Good but how is that supposed to happen if you dont' get the bill until the 6th day before it is due? Except for February 25 days should be the minimum time between post date and due date and the companies should be required to get you the bill within 5 days.

For those worried about their credit score dropping because of the Capital One's and BoA's and Chase's lowering your limits significantly: I would suggest contacting all elected officials on this one as well. The credit scoring system is what needs to be targeted next above all.

Worried the banks won't loan you for a home? Look to smaller community banks for mortgages, avoiding the Chases and BoA like the plague. Also look to your local credit union or a credit union through your employer. Finally- how about the government? One poster mentioned this before- you can get FHA loans no problem with lower or poor credit scores so long as you can provide savings, proof of income and solid accurate numbers on your finances.

The only way to exact real change is to no longer have any dealings with these companies.

We need to eliminate the threat that credit scores pose to us as a society. Those numbers have far too much control over our lives and we barely have any ability now to control what they come out to be…

Some commenters have had problems with changing due dates, mail delays, or simple oversight triggering late payment fees and rate hikes. People should be aware that most if not all the major issuers offer a service that will guarantee never having a problem with that again.

You can set up automatic payments from your bank account, either from the bank side if your account has online bill pay, or from the credit card side. (Doing it with the bank's online bill pay will not protect you from a change of due date or minimum payment amount, however.) All my card issuers will let you choose to authorize them to pull from your bank account the minimum, the balance in full, or some fixed dollar amount. Whichever you choose, as long as you don't overdraw your bank account you will never have a late charge or late-payment rate hike again. Discover, Amex, Citibank, Chase, and probably others with whom I don't have an account, can also send you an email when your statement is ready. (Just make sure your spam filters don't block it!)

If you need to change your payment amount from month to month to fit your available cash, but can at least be sure you can pay the minimum, set up to do that automatically. You can manually make an additional payment at any time you find it convenient. The late penalties may be a gouge, but the means exist to guarantee you won't pay them due to mail delays or unnoticed due date changes.

382 comments so far. Sounds like a lot of folks have a lot of extra time on their hands during a workday.

Obviously some of these comments are from people of entitlement. It is just so stupid to think people who get ripped off are whinny victims. What is next? The girl deserves to be raped because she should have worn a different outfit?

God is not going to pay the credit cards or save you from losing your job.

I already think the government is too wrapped up in business as it is, but I would like protection for my FICO when I close some of these high rate accounts. I feel like I have to keep the accounts open as I am in the market for a house… and then a car. Why does FICO punish the people that do nat want to keep acounts open? If anyting it shows fscal resonsability… does it not?

Thank You Susan.

You do not have to have a credit card to live! Its that plain and simple. If you think you do you may need some help.

I’ve noticed that most of the concerns seem to be about credit card companies lowering a consumer’s credit limit and increasing the minimum monthly payment. Ironically, when a card issuer lowers a consumer’s credit limit, they are actually protecting them (and themselves of course) by not allowing the irresponsible card user to spend more. Also ironically, raising the minimum monthly payment protects the consumer as well. The more of the existing balance the card holder pays each month, the less interest will accrue on their remaining balance. That being said, I have no idea why anyone would put anything on a credit card that they could not pay off at the end of the month. If you want that nice vacation or big screen TV, save up for it! The purpose of a credit card is to build credit and avoid carrying cash (and perhaps earn sky miles or other rewards in the process.) Bottom line, it should never be used to buy anything you wouldn’t be able to pay for with a debit card or cash.
Another unwise thing card issuers do is keep increasing the credit limit on cards for customers with a good credit history when they don’t make that request of the bank. I keep getting notices in the mail telling me that, because of my good credit habits, my credit limit has been increased to $26,000 (pick a number). While I am flattered that they would trust me with that amount of money, I can tell you that I (and 99% of the U.S. population) have no business having that kind of a balance on a credit card. Now it doesn’t really affect me since I’ll rarely put more than 4% of that amount on my card in a given month (which I of course pay off every month). However, I believe that they are opening up themselves to unnecessary liability by allowing such a high limit on my card. For example, if my card information were stolen, the thief could easily charge the full $26,000 on my card. The card issuer would then have to take a loss on any fraudulently charged amounts. If the credit limit were lower, the potential damage would much less. Naturally that loss has to be recouped somewhere by the card issuer (i.e. annual fees, etc.).

I should hope that none of the people who make these comments about everyone living above their means should never lose their job or be laid off. Then maybe you will empathize with why someone might use their credit card to by food or gas.

Get God in your Life and stop being so mean and arrogant.

I wish people would stop saying that the government is interfering in "private" business. For one – all these banks are traded on the stokc market, which makes them public. Two – they took TARP money, nuff said. Quadruple dipping – take TARP, screw everyone's retirement fund, cost this country 100s of thousands of jobs AND jack up the rates, fees, play around with due dates. Absolutely criminal. I am appalled that charges haven't been filed against any of the idiots who brought this great country to its knees. Domestic, economic terrorism.

So let me get this straight. I am whining because I speak up when I pay my bills responsibly for 20 years and then get my interest rate doubled for being a day late on one card but other card companies are allowed to double my rate? I am whining because I get no notice and the increased rate is applied to the balance put on the card many months earlier? I am a whiner when my company for no reason other than to say I never take cash withdrawls took my cash withdrawl allowance from $3,000.00 to $500.00? Do some of you people know how you actually sound? What planet do you live on. They should send a probe to uranus.

The credit card companies had it coming to them. They made a killing on people who were on the fringe (college students especially) and now are seeing they were irresponsible.

The credit card companies know they are taking risky bets on people and quite frankly enjoy making money off of people they know based on their own basic accounting measures of how much someone makes to what they can afford.

No college student with no income should be able to get $10-20k worth of credit. Think that isn't possible? That is what I received.

Granted it is the card users fault for using something that they can't pay for. However, the bank has a system in place to prevent bad loans from being put out with debt ratios and credit scores. If you have a system in place to protect their interests from being abused; use them.

But they ran unchecked to lend to anyone who had a pulse and like the housing crisis it blew up in our face.

I am perfectly comfortable with my government protecting people from companies who have only their balance sheets and share holders in mind compared to the greater good of the people.

It is proven that both capitalism and communism in their purest forms will fail. Thus, the government does have a role in protecting the people when companies have the resources to look after themselves and at the risk of the American people.

To Posted By Jan , Bellevue , Ne…..My guess is Menards is serviced by GE Credit, they did the same thing to me and I just cancelled the card, a credit limit of $300 is meaningless and I am confident that is EXACTLY the response they were looking for, they are trying to eliminate Credit Risk and unused Credit Lines are just that.

Hey David get a clue, I'm at work on break, boy are you bright. Any other great ideas, smart one?

Mike in Baltimore….sorry I can't say it or they won't post it.

Dear Nicky,

You are completely wrong. The contract states that the interest rate is variable, and my be adjusted for any number of reasons (prevailing market rates, late payments, default, etc.)
The CC companies don't break the contracts, they operate within them. If you don't like their terms, then don't do business with them!

But now the congress has stepped in to strip business owners of their rights (and 18-20 year olds too!). The result will be that those of you upset about paying 23% interest will instead be unable to get any credit at all.

I suppose once that happens, congress will step in and require CC companies to give cards to people even if they aren't good credit risks. Of course, that's exactly what happened with mortgages and look where that got us!

I CANNOT BELIEVE I READ THIS…"What a great start. Kudos to congress for this action. Now, they just need to start regulating the way banks charge overdraft/NSF fees!"….Does this fool khow what OVERDRAFT means? NSF= NON SUFFICIANT FUNDS!!!!!!!!!!!!!! that also means you have NO $$$$ NO $$$$…do not write a check that you can not pay for…oops if you do…ya get a fee.I am embarrassed to have read this…like an old friend once said "YA CAN'T FIX STUPID!!!!!!!" ….And as for the woman saying it is arrogant to live within our means…..Your right, I am arrogant I can hold my head up, I make $50k a year and I own a beautiful home, a conservative car and live quite nicely. Children are all college educated, and I have $$ in the bank…why, because I made choices within my means. I found more important things to do with my time and money than try to keep up with all the superficial people living high off the hog, if that is arrogant, fine, I call it being true to myself!!!Look within, what are all these in debt people trying to overcompansate for with "stuff"? GROSS…Hopefully this recession knocks everyone back into reality!!!

To Jon, Chicago, IL: Posted on May 20, 2009 3:39 pm. You have many good points and we all must responsible in our actions and finances, but many people really are victims. Most of these CC companies have been running a "legal business" that by anyone's definition have been nothing more then a scams and theft rings.

I'd be willing to bet that a significant number of the consumers defaulting on their payments are the result of the CC companies charging these totally obscene interests rates which is siphoning money out of the hands of consumers and exacerbating the problems we face today. It's simply another example of short sighted greed and mismanagement on the part of many financial institutions… the same reasons we got into this mess in the first place.

Kim – If you can't afford gas for your car or food for your kids without using a credit card, maybe you should cut your Internet access off so you will have more money for these things. What other things are more important than feeding the kids and gas to get you to work? Cell phone? Cable? Give me a break. People in this country just don't know a NEED from a WANT anymore….

My husband and I pay off each of our credit cards every month. We are able to "make-do" and purchase only what we need, and this is on one income, my husbands. It is possible when you don't live beyond your means to not drive up credit card debt.

I don't have any credit cards, except for a debit card. Life is wonderful living by cash only. I don't miss the days of when I had credit cards with balances and then had to worry about making monthly payments.

Please stop using credit cards and get off them asap. I learned from my grandparents. They never used credit cards, they only had a mortgage and only one auto loan in their lifetime. They bought everything by cash, if they did not have the cash to buy it they did'nt get it and then saved for it!

I feel bad for the people who don't have a balance on their credit cards or never use it but they are being penalized for it. You will be truly free, when you don't need a credit card. Credit Cards should never be offered to college students in my opinion.

Maybe this is a wake up call to the rest of the American public with credit card balances.

I guess you showed them Ron, didn't you. When will you people get it? When will you realize it's the right of the C/C companies to charge as they see fit and the government does not belong in private enterprise? Do you go to Home Depot and only offer to pay them "X" for a ladder? Do you go to a restaurant and only offer them "y" for a meal? Answer to both is,"no" — nor should you. If you don't like the rate, cut up the card(s) (like Ron — and boy will they miss your business — that's sarcasm). Get with it America — capitalism is what made this country so great in the first place.

Credit card companies are just a legalized way to steal large sums of money from consumers. Anyone who needs credit cards to live his life by needs to rethink how they are living. Credit card companies do NOT loose money – they even make money off the merchant transactions. We need tougher standards.

I have the same question as Joe below…. If they have already raised my interest rate, will the passing of this bill require the credit card company to lower it to where it was?

doesnt help me avoid foreclosure in 4 months – what a scam political garbage

Let me get this straight: C/C companies are in business to make a profit and the majority of "you people" are begrudging them that basic right. Is that accurate? Having a C/C is NOT right, but a privilege. If you don't like the rules, cut the card(s) up and start paying cash. If the game isn't "fair" to you — don't play. That simple.

Dear Pam,

Most of these people have read the contract. That contract included a specific rate that would apply to purchases made with that card. Now credit card companies are breaking these contracts by attaching different rates to purchases made in the past. This amounts to breaking a contract and, unfortunately, credit card companies have been allowed to do this and will be allowed to do so until this law is put into effect.

Some people have acted foolishly, however this legislation is putting up a safeguard for those credit card holders who have abided by the contract they signed by preventing credit card companies from breaking the contract without cause. You should rethink calling these individuals stupid. If we as a society fail to stand up for contract integrity we will begin to fall apart. I truly believe a class action suit to recover (only) the interest increases on previously held balances that were raised without cause is much needed.

to Roger Bills:

This country was NOT founded on "protecting people, even from themselves"! It was founded on FREEDOM!!

It's no wonder that we have a congress and a President who care so little about freedom when the electorate is so ignorant of history!

Do people realize that many banks exchanged class A stock for the funds recieved from TARP. Those banks also have a responsibility to make sure the business is performing because the tax payers/government will benefit in the end if those institutions survive the economy. Over regulation of the CC industry is purely a superficial move for the government to pretend they are on the side of the people. As many have pointed out, your fellow consumer who is over-extended is just as much to blame as the bank that issues your card. Credit cards are unsecured debt and are risky regardless of an individuals credit score.

Best advice given yet in these comments is to let your business do the talking. Don't like what your bank is doing with fee's, APR, payment structure? Pay it off and change. Or better yet, don't use a credit card. America living outside of its means is the real problem here.

We, Americans, are spenders…bigger T.V.'s, fancier phones, $200+ jeans or shoes, mind you all from China. Who's laughing all the way to the bank? Not the ones charging all that. My way to resolve this is to use CASH/DEBIT. I'm on disability and know I can't afford a CC. I pay for what I NEED and save for what I WANT.If people would think and do along that line, the CC companies are going to suffer along with the people that feel they can't live without one, not us. We as a whole are a nation living beyond our means. Having less without stress is better than having more and being poor.

Isn't this the same Congress that passed legislation doubling the minimum payment from 2 to 4% on CC? How consumer protected was that piece of legislation??

Its about time. I had two accounts with Bank of America . One at 3.9% and the other at 5.9%. Each had balances of less than $200.00. On the same day I received letters telling me that the interest on both crds was goingto 12.9 and 14.9 % I called BA and got the canned speech. I asked why my rate was going up and all I got was the BA retoric. After several attempts to contact a Senior Executive , to no avail, I called my State Attorney Generals Office and filed a complaint. I was the 28th that day.

Two days later and even yesterday I received from BA transfer balance checks at 3.9 and 1.9%.

They also reduced my credit limit on both cards and my credit scores are in the 700's and I carry very little debt.

Bye Bye BA

Boy there are a lot of posts by jerks. So since I have fallen on hard times, according to some of you, if I don't have money on my DEBIT card for gas then I should just not charge gas and not go to work-then I can live off the government, is this your suggestion??? And if I don't have money for food, sorry kids, nothing on the debit card-go chew on some ice????

This is exactly whats been needed. Its about time.

Citi Bank keep varying the payment due date each month by as much as +/- 5 days . If you are off guard, you can be late and be slabbed with a hugh late fee.

I applaud these reforms and hope they do not wait 9-12 months to implement them. I believe Congress should next focus their efforts on usury law reform.

I have decades of perfect credit and good income. Recently, Capital One and Chase both decided to raise my rates, including the rates on existing balances. Both companies sent easily unnoticed surface mail advising that their new rates would become effective automatically unless I opted out (and closed my account) by a stated date. Capital One wanted to more than double my rate to nearly 25%. This, after a multiple year relationship with both companies and having never been late on any payment to any creditor. I have closed both accounts and will NEVER do business with either company again.

Some of you guys are awfully whiny. Abusive credit card tactics?

Nobody made you spend money with a credit card that you didn't have the income to pay off.

This does not go far enough, sounds like the bankers wrote the legislation knowing they would have to look like someone held them accountable. This was a country founded on protecting people, even from themselves. In contract law we pioneered the difference between corporate and civil contracts. Raising the vig. A crisis hits, you use the card, I can pay at 9%. The crisis causes on late payment, oops, now at 29% interest you owe an additional $400 a month, plus a late fee. Now the family crisis that cuased you to use the card is over, but your financial crisis will never end. What you could have paid in six months, takes you six years. NO RAISING THE RATE ON YOUR BALANCE. Make them issue a different card, put the rate on the face of the card, no confusion. PROTECT CITIZENS, NOT THE BANKS.

Bob B,
It is really nice that you don't have to carry a balance. Do us all a favor and shut up about how much this hurts you. Cry a river that you have to wait two weeks more to buy that 60" TV because you don't want the $30 in intrest charges. Most of us have to carry a balance, and some get run up to 32% intrest rate because they were one day late one time. Now that card will be there for ever because who can pay off that kind of intrest. Loan sharks were outlawed many years ago, until the republicans let greed stand before all other ideals and principles. If you make enough money to not need a credit card, or pay them all off within 21 days, then you have no business crying about how unfair it is to let big business rape individuals. You sound more like a banker than anything else.

Some of us remember that there were no credit cards once and we all managed fine! The banks dreamed up this money stream and have carried it to the EX-stream! Just cut them up/pay them down and use your debit cards with care for any online purchases. Your money can actually be managed by you again instead of some "benevolent" CC company!

I am amazed at what I have read. Why anybody who carries a balance on their cc is suppressed that their rates have gone up. Unless you lived in a cave you know the second you started caring a balance your rates could be changed. You where more than happy to spend money that you didn't have but know that ran up your rates to 29.99% they are terrible people. If you don't want to pay 29.99% don't use your credit card. I wish people could make their own decisions and live with the repercussions and not complain and hope someone comes and holds their hands.

This legislation is protectionist crap. The only part of this legislation that makes any sense is the part banning rate hikes on money that's already been charged.

If a company wants to charge someone who is a bad loan risk a high rate of interest, that's fine. Nothing obligates the consumer to borrow money from that company.

To Mark from Atlanta:

Horray for you!! Once the law comes into effect, perhaps you should apply for a card and then sue the federal government when you are denied due to this freedom-robbing law!

This is all just nonsense.

Credit cards are not fixed rate instruments. I suppose we should also pass a law that says banks can't raise rates on Adjustable Rate Mortgages.

And as far as the comment that the pre-frontal cortex doesn't develop until 25 and thus it's OK to deny a 20 year old the right to credit, can we use that justification to raise the voting age too?

Finally relief on one of my biggest concerns. A small charge by mistake on my credit card ($150) jumped to almost $400 because no matter what I paid, nothing went toward paying off the small amount. The Credit Card company would NOT combine the smaller amount with the larger amount because they were making money. THANK YOU

Payment allocation: You may have a balance transfer on your card at one rate, while other purchases or balances accrue interest at a different, higher rate. Before this legislation, banks could apply your payment to the balance with the lowest interest rate first—so your more costly balance just kept racking up interest. Now, payments in excess of the minimum amount owed must first be applied to the balance with the highest interest rate first, and then to remaining balances in descending order.

What good this bill do for a person like myself who already has five U>S> Bank cards that has an intrest rate of 29-31 per cent.

Ben Hoffman, everyone knows having a credit card is not an entitlement. Nobody is asking to be "Given" anything on this site. I think people are upset over being unnecessary ripped off. It isn't legislating a companies right to do business with anyone they choose. It is simply holding companies accountable for unfair business practices. Preditory lending is immoral and irresponsible and shouldn't be tolerated. They have been doing this for years but since poor people were the main victims nobody cared. Now the middle class has been hit. Guess who was going to be next on the list? It has to be stopped.

I'm a college student who uses multiple credit cards responsibly and this bill is taking away my freedom.

No credit card for anyone under 21 without proof of income or a cosigner? I know there are a lot of irresponsible/niave college students who get in way over their head, but what about those of us who are responsible and want to start building good credit? How will this affect our ability to get a mortgage at a good interest rate when we get out and get a real job?

The credit card company has zero power against you if you only spend what you make so you can pay off your balance every month. In most other countries people survive on what they make and the only debt they have is a mortgage if that.

People say "Oh times are tough I need my credit card". No you don't. Times are tough every where around the world and people still get by on whatever they can afford. Hey if you make $5 you only get to spend $5. How difficult is that to understand?

I hate to lose my credit card rewards because of all the dead weight we're carrying in this country.

to: LG, TX: May 20, 2009 3:44 pm

I agree with the basis of your argument. A lot of people DO do stupid things with their credit cards, but you can't tell me that bank greed doesn't play a part. I have very good credit. Havent had a late or overlimit fee in over 8 years. I always pay more than the minimum. Yet every few months, one of my cards hikes my rate up 3-6 percent. Every time I have to call and complain. They've always lowered it, but this is the exact type of behaviour that the bill is trying to prevent.

and should I carry a zero balance? yeah, id love to. But I just bought a house. And I kind of needed a fridge, washer, dryer, and other assorted things for my new home. Some times you have no choice but to use credit.

But someone who IS responsible with their credit shouldn't be penalized or punished by unscrupulous banks.

chris

you are right but this problem has been gone out for years.
the govt and banks shafted us since 1913. we the people need to take back our county

as with everything else ; this is just another segment of disfunctionality in this econonmy. i just received an emailed from the credit card bank who issued my menards credit card . i made a purchase of $26.00 + on my card . a week later i paid off the entire balance . fortunately i hadn't purchased anything that would have been more than half of my total credit limit which was $2700.00 . when i opened and saw my statement my credit limit had been slashed from $2700.00 to $304.00 . it's said that either credit cardholders use their credit or lose it . the reality of it is that you're damned if you do ( good or bad credit ) and damned if you don't . i have execellent credit i charge no more on my cards than what i can afford to pay off within a month of the statement . in order to make up for the defaults on delinquent cardholders they're going after people such as myself to tack on extra charges within days of purchases on credit charges . as far as i'm concerned they can do whatever they want whether i use my cards or not . it's when i carry a balance that they can stiff me for more money . as long as i don't carry a balance or close down my account my good excellent credit stays in tact. my credit is probably better than a lot of the " corporate bozos " making the decisions to punish the cardholders for paying their bills on time .

Its about time our government put an end to credit card companies abusive tactics to extract as much money as they can from consumers. Most of their stanadard policies are just a way to rip us off. That said, if you use credit cards, you must pay your bill on time and don't spend more than you can afford to pay.

I even don't know what my credit cards' rates are, and I don't care. Why? Because I use plastic as a convenience instrument, and pay off balances every month.
So there is my suggestion for all whining spoiled brats: how about you try the same – live withing your means, spend only what you earn? Maybe in this case our government can spend time on something productive rather than putting useless band-aids on your boo boos that those bad credit companies did to you…

I don't feel that these changes are enough. I wish that the government would create a charge card that would be available to people who have a good record of payment, that had reasonable rates, that they could transfer their balances over to and then pay off.
The credit card companies are entitled to make a fair profit, but their customers are entitled to the interest rates that they borrowed the money at.

I think that this is great legislation. This bill is to protect the consumer, and for the most part I think it will succeed in that goal. There are two things about that bill that I need some improvement:

1) Quicker enactment – I agree taht 9 to 12 months is too long for this to take effect and the the CC companies are going to gouge until then.

2) I do not agree with the "if you are in college you can only have one CC" and if you are "younger than 21 you need a co-signer". I am 22 years old – still in college – and have 5 credit cards (none of which needed a cosigner – and if they did I would have never got them because my dad has terrible credit and my mother passed away when I was young). I had racked up some debt (due to hurricanes, and college expenses & some useless spending)and have recently paid off ALL of my credit card debt, and I am still in college. I do not think that it is fair for young adults to be regulated on the number of credit cards they can have. College students are adults and it is already hard enough as a young adult to build your credit. That provision of the bill will only make it that much more difficult.

There go my rewards for paying my credit card bill in full each month. It isn't enough that Democrats think I need to subsidize people that shouldn't have gotten mortgages and paid too much for their homes, subsidize the car industry, subsidize the banking industry, etc. NOW I have to subsidize people that CAN'T even figure out how to control credit card debt. I am DONE with the Democrat party!

Great. Once again Congress screws up something simple, gives the average American the shaft and spins it (along with CNN) so we the stupid praise them. Is there any way this is going to help those already in debt? No, Congress has given the card companies 12 months to continue to rape and fleece those people. By then, they will already be paying astronomical interest rates and fees. It’s not going to help those because by then, it will already be too late. In fact, my guess is that they’ll jack up rates again and impose new fees BECAUSE of the legislation while they still can. And then, those that have been responsible (or lucky or both) and don’t have credit card debt because they pay off their bills monthly will see their perks decline or simply disappear and new fees imposed, such as annual fees. And getting new credit on a card will even be harder now. By giving the credit card companies a 1 year loophole, Congress has screwed just about everyone on this. People praise Congress for sticking it to the credit card companies when once again, it is we the people that are getting shafted.

Always remember, getting a Credit Card is not a entitlement or right. You have to be credit worthy. So having the Fed regulate something that is not a entitlement is dangerous. There are normally unintended consequences. You can always switch Credit Cards if your not satisfied with the one you have. The more we let the Fed creep into the private sector, the freedom we will be giving up. Let's hope the Fed do not cross the line…

I'm excited about this! It will give me a chance to actually make a dent in my debt.

Jon in Chicago you can't be serious. So you think that I should be ripped off just because someone has a right to make money? Ummm, I don't think so. If you want to make money, make your terms clear and stick to those terms. If you can't do that, you don't need to be in that particular business. Don't make me pay for it. Don't make me a victim and I won't claim to be one. We desperately needed these changes. Too much nonsense was being allowed under the premise of "making money". Well, that is why we are where we are today as a country and why conservatives are out of office. They put "making money" ahead of simple moral obligation to a customer. Why can't you do both? Stop the greed because it has ruined many great empires including the Roman Empire.

I feel for those who have no choice but to carry a balance from time to time. I never have and hope I never have to. For that reason I couldn't care less what the interest rate is. The problem with this is users like me will now find the grace period dissapear and annual fees applied but to be honest, that's when I cut the card up. I have no doubt I will always be able to find one without the fee, so I say it's about time we are doing something to help consumers instead of the Banks.

Our country is based on overspending. If you waited till you had all the money to buy something 90% of people in this country would not own a home right now. If you waited to have money to buy half the crap in your homes 90% of the people would not have much in their homes right now. The country and 90% of the jobs were made due to over spending. That was how our government made our country so great. Go to China if you don't want to live this way you can live in the factory you work in with a bike to get around. I do not I love having things I do not need all we need to do is realize the rest of the world cannot live this way too. That way we can stop wasting our money on countries that do not matter to us. Then i can put 30k on a credit card and pay mins on it for the rest of my life and everyone is happy.

"Alfred," and others miss the point.

Interest should be set to ZERO until the banks are fully recapitalized – because, frankly, you and I have already paid it ($12 trillion in real money and guarantees).

Only this bold act can revive our economy and bring the banks to true, healthy, accountability.

All of you who fail to pay your balance in full each month deserve what you get. What did you think was going to happen by not paying back a short-term loan?

If my bank starts penalizing me for having perfect repayment, I'm dropping them that day and moving to my local credit union.

the apr on 2 of my credit cards was already raised? what happens in that case? must they lower rate to original rate or am i stuck with the new much higher rate?

Banks gave credit to unworthy borrowers who failed to pay their balances. Those borrowers just default and take the credit score crash and go on. Then the banks finally start going belly up and those of us who pay on time have to bail those banks out and the borrowers that couldn't pay. Now those banks want to bankrupt me if they can because I was part of the group that bailed their sorry butts out. I believe in capitalism, and I'm not an Obama fan or supporter. I do agree with him trying to stop the thievery but he didn't go far enough. If a bank took any of the TARP money, then they should be forbidden from raising any rates. If they do, they should be subjected to the same treatment they are dealing out…Their debt to the Federal Government should be deemed due and payable immediately. Goes around comes around….

Looks like just another way to spread the wealth as the responsible credit card holders will take it on the chin via higher interest rates, annual fees and interest from the date of the charge.

Interestingly, 50 million people pay in full each month. I THINK the credit card companies are going to LOSE a lot of those customers if they start charging annual fees, interest from date of purchase or eliminate rewards! If they do, sell your VISA and MasterCard and Credit Card stocks. All they will have left are the irresponsible folks who they will not be able to charge high enough interest and fees.

I'll drop any credit card that does any of the 3 above immediately!

Why do so many people need the gov to hold there hand when it comes to their money. Don't like the credit card companys fees and intrest rates don't keep a balance on them. What is so hard about that. It sounds like this country has become a bunch of little kids.

Dear Trent, Arlington VA:
I think that is so great how smart you were and still are with your credit cards.
I wish the public school system would offer classes on personal finance 101 in high school so that young people can learn the basics. Not all of us have had parents or others to explain these things to us, or just know the full understanding of the relationship with credit.

Credit card issuers are like those brats you would have to play with when you were a small kid and they would always change the rules of the games when they weren't winning.
Sure the government has stepped in and is going to try to make it a fair game, but I am sure that they will find some loophole to "change the rules" to fit their needs again…
We just need to be smart, however I don't think it is fair that they are punishing the good customers…ugh

Ann wiess in Panama City you say you don't care what credit card companies do but then seem to care what individual people do? That makes absolutely no sense at all. Why wouldn't you care what credit card companies do? Aren't individuals at those companies supposed to be held accountable just like you expect the consumer to be accountable? Why should a consumer not expect some basic responsibility from a bank? It just makes no sense and is very simple minded.

Bodine – I agree only with the part of your quote below that states "we have enough violence today". Please read my post below from May 20th 2:35pm.

States that allow concealed carry by legally licensed civilians show a decrease in crime rates, look at the facts. Research this yourself before making such a remark that suggest to take away our rights as free citizens of the United States of America. Just because I don't like texting while driving because it kills, should I take your phone away? I don't think so.

When they contacted me about raising my rate for 3.25% to 9.9% I just opted out and cut up the card. Simple, now I just have to pay it off on time like I agreed to. I do like the changes in the law.

This is what I call a day late and a dollar short. After 3 cards being rasied to 29.99% apr, one card limit lowered and one card closed altogether, I don't see how this bill helps me now as I'm trying to pay off balances at a 29.99% rate now. I pay on time and have a mid 700 credit score. These credit card companies are basically stealing. It's like the housing plans President Obama has passed. It doesn't help anything. People are hurting because of things that already happened and his plans are only helping people moving forward.

After reading many articles and everyone’s comments, I have to say that most of the people adding comments are coming across as helpless victims. Yes, I agree that CC companies shouldn’t be able to raise rates on existing balances (you shouldn’t be able to change the rules of the game mid game), but I think it’s fair to raise rates on new balances. CC companies, like it or not, are out to make money and at the moment, most CC companies are losing more money than they are making because consumers are defaulting on their payments. So everyone that is seeing their rates increase, rather than blame the CC companies, blame your fellow consumers that took on more debt than they could manage resulting in higher rates for all of us. I’m not saying that CC companies are blameless through this entire mess, but come on people, you’re not helpless. If you don’t like the rates, pay off your balances and find another credit card, or better yet, don’t use a credit card. If you can’t pay off your balances, you might want to find a way to live within your means. In my opinion, America has lost much of its strength and charm because we have a society of “victims” waiting for someone else to help them out (aka the US government and fellow taxpayers) rather then taking some accountability and pulling yourself out of the mess you got yourself into. Here’s a novel idea, instead of posting comments complaining about the situation that you’re in, how about posting a constructive idea on how others can get themselves out of credit card debt. My idea, cut out unnecessary expenses. I don’t have cable, limit my travel and don’t eat out. Figure out what are “real” necessities and cut out the things that aren’t. If you think you’re life is rough, spend some time in the slums of Africa and then complain to me about the unfair practices of CC companies.

It's about time. The worst offenders of this practice is Chase, and Dell. They charge 29.99 percent, without even being late. Thank Mr. President, and Congress!! I pay my bills on time, and above the minimum amount, and they hit you hard with these crazy fees.

A little late…never missed a payment, never went over my limit, never was late with a payment…always paid more than the minimum payment due. Two rate hikes later to 29% and I'm stuck with it. If I opt out, my credit score goes down! Thanks, Capital One. P.S. If you're smart, you'll never get anything from this outfit!

If this costs the credit cards revenue, then like any business, the cost will be passed on. Those of us who religously pay are full balance monthly will end up paying for this. Could this be a form of re-distribution of wealth?

To all fellow responsible credit card users, you can kiss your cash back and rewards goodbye. That's the first thing the companies will be forced to cut to offset the smaller amount of money collected from delinquents. People don't realize that credit card companies loose billions every year from defaults (CC debt is unsecured), and need the ability to offset this by charging high rates to risky borrowers.

bring back the gold standard.

Ali by paying off that credit car hand not using it is going to hurt your Credit Score. Just buy at least gas once a month to your car and pay off. Stay Clean On Credit Report – Credit Reports Bureaus are other suckers that President Obama should go after.

On the other hand they Bill should go in to effect immediately. It will hurt a lot of people in mean time. Why we always have to wait for everything and give time? Sometimes I wonder.

After my husband lost his job, we literally existed on credit for a year, frugally as possible but nevertheless, we relied on credit. We are paying the price. We have a five year plan to be completely out of debt and no matter what happens, we won't put ourselves in this position again. I say shame, shame on the credit card companies. It is a hard lesson learned.

I think they should start to overhall the credit rating system that punishes people who spend according to need and reward people who spend with multiple types of incessant borrowing. Then make you pay for a simple credit rating/score. Use that score in charging for insurance and many many other needed products.

I just got ANOTHER rate hike today. And WHY is this not taking effect for another 12 months?? By the time it takes affect, everybody from GM, Chrysler and the State of CA will have already filed for bankruptcy. Hope they change that law too, or else we might see the return of "debtors prison"; but w/o the prison cells.

I am a twenty-two year old college student, and I completely agree with those under twenty-one having to have someone co-sign on a credit card. While I obviously cannot speak for every young adult, I know far too many individuals personally that got trapped into the idealism of having a few credit cards that they could not afford. If you've ever been on a college campus, you may know that in some areas it's fair game for the credit card companies to set up booths on campus, offer free swag, and peddle their "perfect college plans." Sadly, many of the people I do know that took advantage of these credit card offers didn't have stable jobs, modest means for using the cards, and in the long run they racked up debts that would most certainly be difficult to pay off in this lifetime. Here's the thing: We are young adults according to the law…but we are definitely not the most experienced and logical age range. As a psych major, I can tell you that on average the prefrontal cortex doesn't fully complete development until around 25. Guess what this area handles…you guessed it, logic and rationality. While I know many in this age bracket are very level-headed about credit card and debt, sadly it is the minority. Kudos to Congress for adding this bit into the bill.

I have bent over back words to appease the credit cards companies and banks. After 25 years of loyalty they have done nothing but steel my hard earned money and take advatantage of me. Thank GOD for our president.

Most of the credit card companies that want to impose these predatory practices, especially large rate increases for no reason, have already done so. Are we to assume the Legislature and the Obama administration are powerless to help the millions of consumers who have already been ripped off?

A little late, the info from the bank came yesterday raising rates to 22.8% because of the time we have had the card and economic conditions. No mention of paying always on time with no problems.

Thank you Capital One. "Who's in your wallet"

The credit card companies also need to be stopped in raising rates just because you have credit with other companies. You may have never paid late or had any problems. This is becoming a normal practice they use stating you have to much outstanding credit as the reason they to raise your rates. Also if banks only have to give their customers a 30 day notification the banks dont need a year to make this go through so they can raise the rates before it is a law. they have had enough time and make enough money off of the public.

I don't care what the credit card companies do. This is the United States of America, and if they want to charge 50% interest, then let them! It is MY job to be responsible for myself and not get such an outrageous card! I'm sick and tired of the government babysitting what amounts to stupid adults. Any person who reads a contract before they sign isn't likely to be fooled. Pay the bill on time and you don't have to worry about late fees, etc.. The problem isn't the credit card co's, it is people who have a dime store job, thinking they can use a credit card with wreckless abandon. They get into trouble and all the sudden it's the credit card co's fault? Puhleeze. The same-minded people have a job making $35,000 a year, and buy a house costing $635,000 with a balloon payment. What the h*ll are we teaching our kids in public school? This stuff is all basic math. We should make people more responsible for "self" as opposed to wasting time in the senate passing flowery worthless measures that won't do squat in the long run!

its all unlawful money. created out of then air. piss on the cc and the govt.

Coline in Withita, personal responsibility? To assume that people should have personal responsibility or they deserve to get ripped off is like thinking life is fair…LOL. That is such Naive and irresponsible thinking it isn't even funny. How about the banks taking some personal responsibility and stop bilking the public out of their money. I like that one better being that they are supposed to be the pillars of our community. I remember when your neighborhood banker was friendly. Now they charge $5.00 for a money order unless you are a memeber. Then $3.00 if you don't have a premium account. Until I see some stark changes, I will use credit unions who have reasonable fees and at least some accountability.

It's a 30 day interest free loan. If you don't pay it back, don't complain when you pay penalties. Plain and simple. Everyone wants a handout.

Just went from 12% to 18 1/4 on a card yesterday. Never been late, never over limit, always pay on time, good credit score. Too bad it can't be retroactive. I was told in response to my inquiry "the status of the economy warrants an increase". I'm paying it off and not using that card again.

What is stupid is that the new laws don't go into effect untill July 2010. Why not start this July 2010?? After all, many of the laws imposed on us are even retroactive to the beginning of the year – why make exceptions to CC companies?

These bills are a disgrace and insults our intelligence. I will be retiring to a central american country that provides me and my family a higher standard of living. The American dream is only a dream, if you are asleep.

Needs to go into effect as soon as its signed into law. Everyone knows the banks will take advantage of their "grace period".

So all of us who have had our balances hiked to 23% interest from 12% are stuck with it? Why did they not address all of us who got hit since last fall, who are good credit risks? Why don't they pass a bill that is retroactive to last September?

I am really getting tired of hearing so many people loosely throwing the word around “socialism.” Let me ask all of those individuals a very simple question: Do you even know what the hell socialism is? I am an economist and I can tell you that this type of federal legislation is far from socialism. You really want to see socialism, buy a plane ticket and visit Denmark or Sweden? Please, before you start spreading fear of socialism, please enroll in an economics course at your local area college and really learn what a socialism model is about.

Though I do agree that some consumer have abused credit, the majority are not these reckless consumers who go out and buy HD TV sets and fancy silverware. Most are working Americans who are trying to understand why their wages have barely budged and why so many things have increased significantly in price. I have heard many talk about these so called reckless consumers, but why can’t consumers demand that the companies they do business with are honest? With all of the news in the past year about CEO's and employees of various financial institutes practicing shady business, can you honestly tell me that only consumers are at fault here? Really? Let’s say you went to Sears and bought a refrigerator for $800. When the delivery person arrived with the refrigerator, the delivery person told you that $800 was too little and if you wanted your refrigerator you would need to pay an additional $100. I think most here would say that they would be pretty pissed. The ideal of any company being able to freely change terms of a contract because they feel like it is pretty scary. Is it really irresponsible to ask that the credit card companies abide by contracts and create fair lending practices? I have to say some of the comments from individuals in this blog in support of financial institution are just completely idiotic and downright paranoia (please seek help from a psychiatrist).

I hope this helps me, My rate went from about 15% to 29%,…WE HAVE NEVER BEEN LATE ON A PAYMENT!!!!!!

Predatory lending with little to no regulation got this country in the recession that it is in when the new administration took office. Preying on peoples desperation, naivity, stupidity and greed is so immoral it is ridiculous. The people have spoken. They are tired of this nonsense and all you ever hear are excuses and complaints about government in our business which is code for I want to rake you over the coals so don't pay attention to the man behind the curtain.

Parents should teach their children about economics, particularly the rule of 72. Any interest rate divided by 72 will give you the time it take to double your income or debt. So, if you have an 18% interest rate, you will double your debt in 3.5 years, 10% in 7.2 years etc.

I always ask young people [or anyone] how many people get an 18% raise a year?, so, do not buy something on credit if you can not pay off your entire balance.

The credit card companies can accept a significant amount of write offs if they charge enough interest. If you limit the profit a credit card company can make, they will simply not extend credit to people who are "high risk."

Teach your kids about economics in general and the rule of 72 in particular.

Marty Kovalsky – Long Beach

"I transferred everything to this card at my 3.24% rate called them back and closed the account. NOW, I make the absolute minimum payment and they can suck my 3.24% rate till 2016."

Good job Warren, give them a steady stream of income for 7 more years. Way to show em who's the smarter one.

I opened a new card with my local credit union (with better rate and comparable rewards.) I transferred my balance to this card, so as not to give any more revenue to the offending Big Bank (Citi). As an added bonus, now I support a local business, instead of continuing to send more income to line the pockets if corporate fatcats. I will not be punished for my fiscal responsibility, nor will I continue to support a company that doles out such punishment.

Great post Chris from Nyack. SHort to the point and all too true.

Personal responsibility. That's all you need. Second, the credit card companies will get their profits. Instead of getting profits from rate hikes and fees, maybe they start charging an annual fee, or reduce perk programs, or charge you more for overdraft. So if you are one cheering as if you won some major battle, think again. You are about to get flanked.

Crack Down on Credit Cards!
Obviously this is a great sound bite, but the bill doesn't go far enough! Why didn’t the government put a limit on the APR the credit card companies can charge? I am sure they realize CC's are charging up to 30 percent maybe more. Why isn’t there anything in the bill on the way CC’s solicit consumers. I have a credit score of 572 and still get offers in the mail! Why would any credit card company want to give me a credit card? Credit card companies are legalized loan sharks! Why doesn't the government get serious and really do something to help the consumers. I am sure they have read the blogs where all credit card companies are raising rates in anticipation of this bill passing. How is it that we gave these companies tax payer money and then the consumers are hit with extra fees and increased interest rates. We did them a favor and got a slap in the face as a thank you!

This bill has no teeth. This is just another smokescreen to keep the general public satisfied, while corprate America milks its cash cow.
Our government getting involed in this whole mess was a mistake in the first place.
Let me get this straight… so… my tax dollars can go to companies like Bank of America, Chase, Citibank, etc… to bail them out of bankruptcy… then… in turn, those same companies slam me with higher interest rates to keep themselves from bankruptcy… sounds like double dipping to me.
I am really tired of America the beautiful screwing up my life. Hell… most dont even realize that paying taxes the way we do goes against the consitituion in the first place. We need to get together as a single voice and march on Washington. Its a shame when your common enemy is your own government.

Ohhhh, brother! I'm so happy to learn that the bill passed the senate today. Capital One, #1 predator out there in my book. Moved up the due dates without notice so that the budget that one included the payment in was unusable…and voila, a late payment with all of the predatory charges attached. Never will do any business with them again, and will no longer use a credit card. They're not worth the convenience…perhaps I may consider one for emergencies now with the new regulations in place.

Two little words for everyone getting nailed with rate increases for no reason, "opt out". Then stop using the card. When the industry has no customers left using its cards then there will be real reform.

Best way to get them now is to stop paying all your credit cards. Get them where it hurts before they get you. If you have good credit – they are going to rip you a new one with increasing your rate to 25% or 30%. Like in war – get them before they get you – and like war – the more that fight the better the outcome. I'm not making another payment on a single credit card.

You can't put a cap on what banks can make. That just isn't constitutional. God knows I hate banks and what they have done to the people for decades. It has been a legal monopoly the way they have screwed us….but we can't legislate how much they make…and shouldn't. As long as they clearly indicate what the so called rules of the road are, and don't change the rules simply at their own whim or self interest I am okay with that.

isn't this kind of like the government's bailout of irresponsible and greedy corporations? only it's a bailout of irresponsible and greedy citizens. for the minority out there who cannot get by due to job losses and hardships, i feel for you and i wish the government would concentrate on helping you. for the rest, put down the plastic and pay off the balances. btw i am not above irresponsibility, i have my own debt that i am paying down. however i stopped my cc usage before it crippled me, and now i should have everything paid off in less than a year. you just need to see how much money you are throwing away in interest, and read the fine print of everything that sounds too good to be true… because you know what they say about that.

Its about time the Government stands up and does something against the greed of the banks. Previous admnistrations did nothing, they protected the industy and banks and not the people. Blame can be pointed at everyone but mainly the government and the industy for abusing the trust of the customers, abusing the laws, and greed. THey let the lobbiest control things and a big blame goes to the Republicans, alwasy doing stuff to benefit the business and not the people.

Anyone trying to defend the bank has issues, they knew what they were doing and the knew the risks. Thats why I have to LAUGH everytime I see a chapter 7 or 11. Stupid banks lose a but load.

I did not get to read all the comments but you guys do know the CC companies still makes money from vendors for swiping their cards. Those people who still pay full in monthly, the CC companies makes money from them by charging the vendor when the person makes a purchase. That's why they are able to give out free mileage and x% cash back.

If people need money for emergencies, they need to go to the bank to ask for a loan with lower interest rate. They shouldn't spend money they don't have in the first place.

Not True! The current bills do NOT ban rate hikes on existing balances. If they did it would be the cost to do business in these trying times. No, Bank of America are raising the rates on all existing balances. Get your story right.

I hope this bill passes. Ive met several people and have read about so many people that have been affected by Chase increasing the interest rate. I had 2 WAMU Credit Cards for several years and Chase took over and I get a statement and my interest doubled. Ive always paid on time and made payment at least double of the minimum due. Now the Interest due is almost the payments I was making. These banks are forcing consumers to default on their payments because the balance will never go down.

Funny how many of you call any govt regulations where money is concerned socialism, but these same people don't mind our other freedoms being stripped away.

Land of the free? A neighborhood association can have your home taken from you if they don't like how you mow your lawn. What's so free about that?

As for an earlier commentor who said that jobs are moving overseas because people there are smarter? Uh, people there get paid less! The only people that are smarter are the CEO's.

The fault for this lies at both the "corporation" and my fellow Americans feet! The problem is that these corporations are run by my fellow Americans not by some faceless and nameless entity (satan, beelzebub, etc).

Hey Dave (Clifton, NJ), I can't wait till you get the bill from Uncle Sam… oh you forgot to mention that the gov sees the difference that you settled for ($37,500) as income and they will tax you on it. Also, with this new law it may take a little longer for anyone to lend to you again since they are less likely to take a risk. Good luck trying to scam uncle sam… the worst thing banks can do is hurt your credit score, the gov can put you in jail.

I have the same concern with a comment from Houston,TX as I always pay off my balance monthly and receive a fat reward at the end of 12-mo period. But, I think in this environment, the banks prefer the people paying off their balance every month to reduce the risk of default. I called AmEx, which I received twice fat reward in the last 2 years, to ask them if they would give me a promotion rate of 1.9% for purchases (I got it from Discover for 2 mos). The rep. said that they could not and they prefer me to pay off my balance than collecting interest on it.

Clifton,

All that money that the banks "ate" was then potentially subsidized by the US gov't which in turn got its money from YOU and ME – the tax payer – assuming you paid taxes last year.

Of course, I would never presume to appeal to your conscience…or even presume you have one.

Long long overdue. None of it was a problem for me. I stopped using banks and have used credit unions for over 30 years because of this nonsense. Never had one problem with a credit union. However, feel that the predatory practices these banks have been allowed is just cruel and painfully unfair. Congress has allowed this nonsense for way too long because they are in bed with them. Glad to see the american people start to hold elected officials accountable finally.

Consumers should be the force that shapes behavior. Existing laws (usury)should be leveraged to shape behavior instead of knee-jerk reactive legislation. Finally, consumers must shoulder more responsibility for their spending habits. If you can't afford it today, how can you afford to buy it and pay the interest?

Reading Comments here. Alot of folks upset because the CC Companies have increased rates and have done this even though you are on good standing with them….

Do you not realize that they lobbied alot to make sure these Bills will not pass? They want things their way and on their terms.

They are hitting all of you hard because of the economy? Nope, another excuse to raise your rates, cut your limit (which many then get charged for over the limit fees), and make everyone pay for the CC Companies mistakes.

Its really all of our faults though. Our country relies too much on credit, to buy a house, to buy a car, to even live in the US. It has become too expensive to live in our own country and we probably will not be able to afford to pay rent with a $30 an hour job in 40 years.

I see that cost of living keeps going up, bills keep going up, and essentials keep going up. But I do not see the paycheck keeping up. This has been happening for 50+ years now. Do you make as much money as somone did back in 1960? Gas attendents made 1.25 an hour. Do Gas Attendents make 12.50 or minimum wage? Yet things have increase 10 to 15 times the amount since then. We need help folks.

True, the fact that I had to carry a balance because of a surgery or when I had to purchase $700 in textbooks the same week rent was due DOES make me irresponsible. Paying your bill in full every month is hardly the end-all-be-all criteria for credit "responsibility"

I agree that credit should not be used to live beyond your means; however! it's a way to provide flexibility to those means and a cushion in case of emergencies.

And let's not forget that it's those 'irresponsible' borrowers that give the rest of us the oppurtunity to have credit cards in the first place.

This bill primarily forces the credit card companies to abide what any other industry would consider common decency. What's wrong with requiring timely disclosure of material changes to your credit terms? To prevent them from drastically increasing interest rates on a whim, particularly on existing balances? To double the rate on one card that (argue all you want) has nothing to do with a late payment on another?

This bill doesn't let irresponsible borrowers off the hook, it stops the credit card companies from kicking you when you're down or made a small mistake.

Travis, CO makes a good point: credit is no longer a luxury, it's a necessity.

I lived within my means. Then the price of everything skyrocketed yet my income did not. Then the government enacted the credit card bill that made us pay a certain amount towards principal which doubled a lot of my minimum payments. I was still doing ok for awhile. Then one credit card company took me from 11% to 30% for no reason. No late payments or over limits on any bill. Their excuse-I had a collection notice for a medical bill. I told them I was fighting this with my insurance. They said rate was done. No changing. At this point another card decided that they were going to raise my APR as well. I am now having to buy some groceries on my credit cards to get by because gas was so expensive. Then I get my tax return and pay a large chunk on some cards. They then turn around and lower my credit limit to within dollars of what I paid down. This now makes me look like I have 100% used of my line of credit. Now my other cards state they are raising my APR and lowering my limit because I have too high of a debt to limit ratio. It is an avalanche that they started. Not me. Now it looks like I have 90% of my limits used where before it was 40%. My interest rates have all at least doubled. Yet I have never been late or overlimit. How does this happen? My credit score has also dropped due to the ratios. This is because of them…not me. I still pay on time each month. Yet when you send in $150 and not even half of it of it goes towards principal it makes you sick. I was fine before. Now I dont know that they will ever get paid off. I cant even get a loan to consolidate my debt because my credit score has dropped from the 700s to the 500s due to their lowering limits and jacking my rates.

How is this my fault?

I find it odd that certain folks (beside the credti card companies) oppose this. When you read the practices it alters or fixes, they read like a loan shark's list of things to do. All this does is make it more fair to the consumer. Beleive me, credit card comapanies will still make a ton of money. If you cannot make money in a fair, straight forward fashion without deceit–make money some other way.

I have no problem with the CC part of the bill. What I have a problem with is the crooked, corrupt SOB's that put crap in the bill like THE RIGHT TO CARRY CONCEALED WEAPONS IN NATIONAL PARKS!!! We have enough violence in America today and NOBODY needs to carry weapons in public except the police!!!!! This is what is wrong with our government. Instead of just putting what needs to be in a bill to act on that problem, they sneak all this crap under the table. The entire CONGRESS should be fired!!!!!!

Wow the comments on these pages are from the ill informed and those fortunate people that have never suffered through credit card debt and large student loans.

I had to use my credit cards to buy books and help with my college expenses. I had to take out loans because there was no golden parachute of a college fund nor parents waiting in the wings to pay off my bills, nor did I move back in with relatives after college. Did your children? I am the first in my family to attend college which was achieved through grades, loans and grants.

School tuition, residences, fees and books have jumped 500% from 30 years ago…

However, these packages were insufficent to pay for school expenses and I needed to use credit cards. When I left college I was offered a salary of 32k in a major metropolitan city. With my student loan debt up to 40k and my credit card debt hovering over me like a black cloud…I did everythng to pay this back and continue to do so. I currently have the debt large enough to pay for a small house. It is my debt and I take responsibality for it to pay it back.

However,three months ago my credit card companies kindly raised my rates from 7 % to 24%, decreased my available credit and thus ensuring my fico score went into the toliet… I do not believe this is neither fair nor right without proper notice and justificatioon and makes trying to get out of debt a whole lot harder.

America is the only country that penalizes you for trying to pay back a loan with higher loan fees and interest rates.

People- this is counterproductive.

Certain individuals on this board need to wake up and smell the future. I for one welcome these incentives from our government and this is the first piece of legislation that I have jumped for joy to see being passed.

I would love to hear from these commenters in a few years when their health begins to fail-ratcheting up excessively high medical bills, they loose their jobs, their 401K tanks, pensions become obsolete, they start to loose their homes and their children cannot help because they have their own financial woes. Then we will see how sanctimonious some of you are regarding debt and will be eating crow.

People that live in glass houses shouldn't throw stones.

These bills do not address interest rate caps. We need to return to an 18% maximum rate. The credit card company automatically makes 3% on every purchase you make so if you pay cash you should be entitled to a 3% price reduction on all purchases.

For some of you screaming such things as "socialism" and that we are creating a "victim culture…"
They say the definition of insanity is doing the same thing over and over expecting something different. Guess what? People are always going to be stupid and money lenders are going to be as predatorial as they are allowed to be. Guess which one we have control over? Thats right, its the "money lenders", so its not like Congress has much of a choice here. I suppose we can keep going with a "laissez faire" attitude towards credit and lending but I just don't think thats going to work.

Mr. Clifton,

Do you have a conscience. What you have done is essentially theft, except that it is legal. That something is legal does not make it moral. The credit card co's may screw people over but that is no excuse for your behavior.

Yesterday I received notice from Capital One of the rate increase from 7.9% for purchases/transfers to 17.9% & 24.9% respectively. Card member for 9+ years with a high credit limit, paid off monthly, and a significant Direct Banking savings account to boot. Couldn't close my account quick enough despite all their pleadings and reasonings in the phone call.

They are hurting their best customers with the one-size-fits-all-defaults rationalization. Good riddance Capital One. I will now be closing all my accounts with you after this zinger.

The new credit card bill is too little to late and it is giving the credit card industry plenty of time to change the rules of the game so they continue to hurt the consumers who can least afford it.

Put your money where your mouth is. I was one day late with a payment in 20+ years (distracted by a divorce). Both Chase and Bank of America raised my credit card rate (balance for $20,000 for divorce attorney fees). I complained to Chase and they took me back down to my 4.99% lifetime rate. BOA left me at the jacked up 29%. So guess what. I just moved my checking and savings accounts to Chase/Washington Mutual and my $83,000 salary is being direct deposited there as well. I'm boycotting BOA for life. If they can't have ethics/morals while simultaneously running a business, then they no longer will get my business. And I've convinced 10 of my IT friends to close their BOA accounts as well. You know if enough of us do this, they will get the message. By the way, the earlier observation is true……there's no reason these changes couldn't go into effect much sooner. It sure isn't development bogging down the timeline. They didn't seem to have a problem getting their programs changed to adapt to immediate changes in fees, letter generation cycles, etc.

My God, do you see what these Companies were allowed to do to everyone for years. Just how much money did they steal from the Public.

I want to know what Congress Members and Senate members ever voted in favor for these Companies to do this.

I want to see thier names all over the News, and rightfully so.

I hope you all know that the Bank CEO's tstified in front of Congress and all raised their hands when asked who raides Credit card rates after getting tax payer money. They all raised their hands. So they jacked rates on everyone.

Now congress says they have frozen the rates. Well that means they just froze in the higher rates forever.

And this new Bill is suppose to be a good deal for us.
Oh contrair monfrair, that is a Bill I can use for toilet paper.
Again the merican People were decieved and lied to andscamed by your local do nothing Congress.

WHEN ARE WE GOING TO MARCH ON WASHINGTON????????????

Comment to Dave in NJ: I just have to clarify here…the cc companies really didn't report you to collection? That seems very unusual. But I sure do like the idea of reducing cc debt by 75%! Also, it took 5 months before they came "begging"? That's a long time to get those awful phone calls…
But something to consider. Any other "advice" you can offer on how to go about this "tactic" would be great!

To Bill in Moline,
With all due respect, unless you are paying $1.00 per gallon of gas, the $0.10 difference you note is appximately 3.75% increase based on a gallon of gas priced at $2.50, not 10% as you suggest.

I recommend that you take some math classes.

The item 2 on the 'Just some info…' comment is not correct. In fact, the more cards a person has the worse is her or his credit rating. Total of all credit card maximums is the potential debt used to be added by credit bureaus to real debts, such as mortgages, auto- or student loans to calculate personal risk. Any attempt even to apply for an addtional credit card is noted and decreases your credit rating, because credit bureaus see it as a sign of financial discipline weakness or low available personal assets.

Granted if people were smart and never bought anything on credit that they couldn't pay completely off that month nobody would ever pay any interest and the rate would be a moot point. But I guess when the President borrowed $100,000 more than his house was appraised for, we can can't expect average Americans to be any smarter.

I would like to touch on this comment below. It is way off the subject, but still very relevant to the topic of this bill. It is shameful that someone who would post such a negative remark can't even add his or her name on it…

"You also get to carry loaded attack rifles and handguns into National Parks because of this bill. Posted By Anonymous: May 20, 2009 12:26 pm"

Most states today have concealed carry laws that allow citizens who attend a government specified training course, and pass a background check, to carry a concealed weapon. (Not an attack rifle out in the open like the un-informed poster stated). The problem with these laws are when people with a legal carry permit need to drive thru a National Park, or stop for some photos they are breaking the law. Lets not forget the point here. These people are legal to carry a concealed weapon and you pass them on the streets each day. Don't be fooled by antigun organizations that legal gun owners are criminals. They are far from that. Legal gun owners make our streets and homes safer. Want to challenge that? Anyone who reads the crime rate statistics of the latest states to open up concealed carry laws can see that crime rates go down. This is not a thought, or an idea, it is the cold hard facts. We should all be happy that the government would now allow us to protect ourselves if we so choose in these parks. Don't think for a minute the current laws that restrict firearms in parks will stop that criminal who for years has taken weapons to parks illegally, from robbing your family… attacking your kids… or worse! It is a gun free zone currently and that criminal knows that they will face no opposition.

Greetings. Some of this legislation seems reasonable. However, it appears that Congress is ignorant of the actuaral process that goes into determining rates & limits. Yes, the credit card buisness is like life insurance.

For starters all banks and I would hope all buisness's are greedy. The point of being in buisness is to make money. Problems occur when a buisness is unethical. So greedy, ethical buisness's are good in my book.

The problem with credit cards is its unsecured debt. Unlike a house or a line of credit, there is no equity at stake. If you want to walk away from your unsecure obligations, there is not much the banks can do. Your credit score will be crummy. But its not like they can do anything. If they give you too much havok, declare BK and your clean. I know people who have done this without hardship. They just planned for it.

Now back to banks. They have these tables just like life insurance where if you do "THIS", the odds of you defaulting increase from X to Y. Replace with life insurance. If you smoke or had cancer, your rates will be higher. There is nothing personal about the matter. The bank does not know why you were late, only in that the raw statistics say if your late the probability of you defaulting increased. So they will adjust rates to account for the increased risk, with the understanding that if they increase too far, it guarantees default. The little table describes what the adjustment should be.

I personally believe that with the need for some tweaks the system works. Everyone has the right to be stupid. The banks cannot run a stupidity test. Regardless of the safeguards in place, someone determined to work the system will find a way around it. The consequences will be that people with less income who are responsible will have fewer opportunties to establish credit. It will not be personal. Just that the little table says that the bank cannot make money with them being a customer. This is unsecure debt. The banks have to address for the possiblity they lose their entire investment. A defaulter just loses their credit score for a few years.

I like the minor restriction but the restrictions on young adults is kind of dumb I think. My mom thinks its dumb when I'm an independent college student and still require her to cosign or to approve financial decisions. Thank goodness I'm turning 21 in OCT!!!

So, legislators will fight to the death to insure a teenage girl can get an abortion without parental consent, but they expect an adult in college to get parental permission to have more than one credit card? Doesn't this sound like the world is upside down?

Too late. I and a large number of people I know have already been "credit jacked" by various credit card companies. They hiked my interest rate to 30% and 29% and also dropped my credit rating so I was then over limit. Only after I protested for hours, then days on the phone did they agree to drop their fees (gee thanks criminals!) and was able to lower my new fee to 22% which would kick in after 6 months of no late payments. Note here- I NEVER have had any late payments and they're treating me like I am habitually late or that I never pay my bills. NOTE to Congress AND these bank criminals- I will be selling off ALL my stocks and paying off the balance of both (under 3k) and putting the rest in a savings account. The hell with your thievery.

Why didn't the government put a limit on the APR the credit card companies can charge? Why isn't there anything in the bill on the way CC's solicit consumers. I filed for bankruptcy in 2003 and the week after it was discharged I received at a minimum of three CC offers in the mail. These offers were even from CC companies in my bankruptcy. Credit card companies are just legalized loan sharks, plain and simple. Maybe the loan sharks are a little more symphathetic!

Wow Dave (Clifton, NJ). You sure sound like a standup guy…

I was just notified by CapitalOne that my creditcard rate is going from 12.9 to 17.9% and cash advances are going from 19.9% to 24.9%. (Wow what a deal only 21% above prime.)
Since the creditcard companies know that they will have a harder time increasing your rates when the new laws take affect, they are raising everyones rates now as much as they can. I never miss a payment, I always paid ALL my bills on time even though I'm on a fixed disability income. For being responsible I get the shaft. I have done without a lot of things even some meds and surgical procedures because I couldn't afford them (even though I have Medicare.). I didn't ask anyone to bail me out. This bill still does not go far enough to protect us from unfair rate increases.

What does it me for me?

Getting my rates hiked up on my Credit Cards now – before legislation goes into effect.

That's what Capital One did to me this week – an almost 10% increase – even though I have never been late on this card or any other card or bill in my life. Reason: Due to the economic climate..they are so full of it. And NO, there are no exceptions. Talk about customer service.

I'll greatly miss cashback rewards, miles, and hotel points as the credit card companies start to look for profits from responsible customers who pay off their balance in full every month. As usual, the responsible are the ones who ultimately lose when Congress legislates what they perceive as economically fair.

why is it that i played by the rules, and now i have to bight the bullet, again. now the responsible people are going to pay the price for the irresponsible people and their poor choices and simply, just their greed. i live in a modest 1200 sq ft house, well within our families needs. we made very simple decisions-just to live within our budget. now, i would like to know when the banks start charging me annual fees, am i going to be able to cancel my card(s) without any consequences to my credit report. will the government pass legisaltion to help the good guys who played by the rule???

Banks are merely legalized loan sharks. After reading so many comments from others, I must add to this conversation that, as the politicians love to say, "there's enough blame to go around". Who doesn't like mastercards commercials about "…priceless"? Well, banks (credit card companies) have been paying multi-million$, heck, billions! for decades to push their product, then we as Americans are told when a disaster hits, "GO SHOPPING!". We are a consumption-based economy, GDP and all of that. Americans need to learn about finance in all public high schools; from home mortgages, and bankruptcy to savings and investments, if not from just mom and dad. It should be required education. But the banks prefer Americans ignorant and rash. We want what we want when we want it, and we can be downright arrogant about it. The banks LOVE! it that way. Pres. Obama inherented this quagmire from good old Bush–giving tax-cuts to all his rich friends. One of the 1st things Obama said when he got into office, "We now have to be a pay-as-you-go society". When you use your charge card, just pay it off when the bill comes. Or say to yourself, wait until I can afford it. How many Americans are taught the value of waiting?? Europeans do it. American way of life is, "Buy now, worry later". I'm 53, and I doubt these Americans-the majority of us will truly change their ways. This recent legislation doesn't go far enough. Those without medical insurance are the most at risk for atleast the next 9 months. It shouldn't, and doesn't have to be this way at all in our country. The banks own the politicians. That's a fact.

George Ellis from Austin his the nail on the head. Once again those of us living within our means and are never late (yes, never late) paying our bills will once again get to thank Congress for imposing unjust fees and interest rate hikes on us.

This is a very weak bill, and it doesn't take effect for almost another year! Right now the banks and credit card compamies have free reign to do whatever they want, anytime they want, and even after the new law kicks in, it will only have very minor limitations. Just remember, these companies are the ones that got hundreds of billions of our dollars from our govt for screwing up, so that should tell you that they have the power right now, and we don't. Think carefully before accepting a credit card offer folks – it's like the wild west out there, and there's no accountability at all.

Focus on manking more and not in penny pinching. When all your time is wasted on cutting coupons you become a good coupon finder/clipper. When all your time is used on becomeing a more educated and valueable resource or a busniess owner then then money will come. Hense you will always be able to pay your bills in full and on time.

These kind of news stories are for the poor.

WHY does it take so long to get it into effect? Nine months? Tweleve months? PLENTY of time for card companies (banks) to jack up rates, et al.

I'm sorry, but I'm against those young adult provisions. I'm no longer a young adult, but once you're and adult, just the fact that you're young shouldn't limit your limits or just to one credit card if you're a college student.

Oh great … but in the meantime, Providian (which had low rates) was bought by WAMU (which still had low rates) was bought by Chase (which only now raised rates on good customers who pay their bills by 5 percentage points!

As my mother would say, they're all in cahoots — and we can't win!

My wife and I just finished one of those Financial Peace University courses. In the last 6 months we paid off 8k in credit card debt (18% of salary, FYI).

Paying off the credit card debt was painfully simple when we started paying cash for everything (the good old envelope system). Stopped contributing to IRA, stopped college fund, stopped everything (except insurance). We put every penny towards the debt. Now that the credit card debt is gone, we're kicking back in the IRA, etc.

Stop using credit cards and it doesn't matter what rate they charge.

Funny thing, once we started using an actual budget and paying cash, we realized how much money we just flushed away on stupid stuff. With NO change in income, we're realizing that we can actually afford to refi our mortgage from a 30 to a 15 year fixed and save about 150,000 in interest payments over that time frame.

Debt sucks. Don't do it.

I do like seeing that they have to give notice 45 days in advance on them canceling your credit card. I lost my job in october but started planning my wedding almost a year ago. Living in michigan a year ago i would have never thought that My father my soon to be wifes father and myself would be out of a job. Now were trying to get through a hard time with a high end wedding. I had a credit card that was the just incase card for the wedding. Down to 23 days before my wedding and i get a note in the mail my credit card has been canceled because im not using it. I call the company and they cannot undo the card and now i have to reapply for a card. Without a job they will not give me one. This was through Chase bank. How much of my tax money have they recieved just to screw me over? Im not looking to win the lottery here I just want a job that pays for a house kids and a dog along with being able to get to work not riding a bike since I don't live in China.

After being hit will all the legal credit card scams on the book I decided to ramp up my CC debt to around 50K and renovate my two rental properties (4 units) to get more rent. I stopped paying my credit cards and put my phone on silent to avoid the onslaught of calls. 5 months later all the credit card issuers want to negotiate at 25% of my bill to close my account. WOW 12.5K to settle 50K!!! From this point forward I'm cash positive with my expenses so what do I care if I don't have a CC for a year or two. Nothing went to collections so my credit will bounce back with time. I don't need to refi because I have super low rates. Needless to say I expect the CC offers to start coming in the mail soon.

Remember CC companies are addicted to you too…

Too little Too late

You know I love everyone who says, "If you can't afford to pay for it in cash then you shouldn't buy it; that credit card companies are allowed to make money too." While I was attending college the ONLY way I could afford to purchase my books was by using my credit card. I always paid above the minimum due and I was never late on any bill, for anything, EVER! But after I graduated college and my student loan deferment ended my credit card company suddenly increased my 7.99% interest rate to an astronomical 25% because of the change in my credit score! I think the proposed restrictions are a great way to go!

When I read this article, my first thought was, "Too late!" Just a week ago, Chase sent me a notice informing me that, because of current economic conditions, my rate will be going up.

I, like many others commenting here, pay on time and more than the minimum (oft times, significantly more). Trying to do the right – or best – thing apparently just doesn't matter.

I agree with others, the credit card companies decided to deliver a preemptive strike. And – the good credit customer is paying – literally – the price.

Credit card companies have had too much fun making money thru preditory practices. I think we need way less credit, more durable goods, and more home life not nite life.

There also needs to be a provision that clearly and unequivocally tells you why a credit issuer changes or cancels a card. Merely stating in an unsigned form letter that an analysis of your credit report indicates too many credit cards issued with balances due needs to be stopped. The letters need to be signed and clearly state that we show you have 8 cards with balances exceeding 75% of your available credit which is not within our guidelines of 8 cards and 60%. This bill needs to be furthered refined and take into account the misdeeds and misinformaton from credit reporting agencies, the long time it takes to resolve issues and discrepancies, and the efforts of the credit issuers to extract the greatest amount of fees and charges they can.

Not to brag, but I beat the system by playing by the rules. In college, I applied for at least five or six cards and used each one for regular purchases but paid off the balance each month. When one of them offered a balance transfer with no fees at a rate lower than the rate charged for my $5000 loan on my used car, I took the offer and paid of the car before the introductory rate increased. When I graduated I had several cards but no debt on any of them.

The result, when I went to buy a new car, the finance guy told me I had a credit score higher than almost anyone he had ever dealt with (nearly 800). This is because I had established a long track record of paying off all my accounts on time. Soon after that I purchased my first home and again got a warm reception from the mortgage people thanks to a high score. One of my cards then offered me a balance transfer with no fees at 1% for a year and I used that to pay $16,000 on the home equity line of credit I used to pay for 20% of the house purchase. When the introductory rate was about up I did the same thing again with a balance transfer to another card, again for no fee at 3%. When that introductory period was up, I paid off the card with the HELOC, but the balance was significantly lower because I used the money I saved on interest to pay down the debt instead of buying more toys.

Then I had to move for a new position but wanted to keep the first home as a rental investment. Wondering if I would be able to do that and purchase a new home (last year, when credit was hard to come by), I asked if that would be possible without selling the rental property. The response (in the deteriorating credit climate) was basically, "How much would you like, Sir".

All this because I read the fine print, paid my balances in full every month, did not spend on things that I really did not need, and to be honest, stumbled into doing the right things because of dumb luck as I did not realize having several accounts with low balance/limit ratios for a long time makes for a very high score.

Brian from Madison, WI: If you pay your bills on time and in full, you should not worry about CC companies raising EVERYONE's rates. Your rate is 0. No socialism, communism, fascism, or any other "-ism" on horizon for you.

1) If you are late on one payment to one issuer ALL your crdit card rates will go up to their max.

2) If you cancel your credit cards it reflects negatively on your credit report.

3) If you don't use credit cards, or are in debt in some way, you can't develop a credit rating.

Just some info………….

Anti government whackos….. The government is for sale, and has been for a long time so if the government isn't supposed to act on behalf of the people, who is??? The banks? like citibank and wachovia and all the others that got rich ruining our economy? Does anyone remember Enron. Corporations are greedy and victimize individuals, the pollute, poison, steal and often kill for better higher profits. If left to their own devices(deregulation/free market)which has been the last eight years or so, they become cannibalistic and prey on themselves. Bad loans issued by bad banks, for cars, homes and credit cards were sold as good debt, or actual money. They were leveraged together and bought and sold on the markets making a very select group of individuals ridiculously wealthy. Debt is a business, the mob has been in it forever.
I have no credit card debt. I have no mortgage debt. I'm a working class 30 year old who lives in a tiny apartment. I've had a job since I was 15. I've never been on public assistance, and this credit crunch/recession has had little to no affect on me.
Credit cards and auto and home loans are the lubricant in our economic engine. If americans were to live frugally on tight budgets and stop this rampant consumerism our country and society might very well collapse. Consumerism is capitalism. Capitalism is our economic system. If no one's buying we're all out of work.

Just one question:

Why does it have to take nine months or a year to enact? There is no legal reason to wait. Is it because those voting for the reforms stand to get something extra in their Christmas stockings if they allow the rape of consumers using credit to extend beyond this upcoming holiday season?

This is the 21st century and it does NOT take nine months to change a few variables in any financial software program so that the changes can go into effect immediately. If my power company (another robbing leech) can change my rates overnight with that much ease, so can the CC companies.

The legislation sounds great, my concern is the response from the banks. There many people like me who pay our bills off EVERY month and in many cases get cash back or airline miles. Until now, we have been immune to interest rate hikes and minimum payment rule changes because we don't carry a balance. As a result, we use credit cards for everything; food, gas, utilities, etc. Now, if the banks begin charging annual fees or even worse interest on purchases from the day they are made, we will have to stop using them. Everything will shift back to Cash, Check, and Debit.

Remember, the Banks WORST customer is the one who pays his/her bill every month in full. The Banks BEST customer is the one who pays on time, but carrys a balance..preferably the longer the better. This legislation ony benefits them and will likely punish us.

Thats OK…after all shame on me for paying my bills and not spending money I don't have.

The interest rate is going up on my 2 credit card accounts—to almost 30%. According to the banks, it has nothing to do with my credit rating or payment history. Closing them looks bad on my credit report (not that I'm going to use them), and that is the only way to keep my interest rate where it is. Does this new law take this into account? What recourse do I have?

I think the funniest comment on here was the person who said that the people who pay their credit card bills on time are the problem, because the banks arent making money off of you. WOW, what a statement. If every person in America was doing this, there would be extra annual fees, etc, so they make a profit. There is no issue with this as a lot of Americans will not pay their card bills. At 10-30%, the banks are making plenty of money off of those that don't pay their bills. I would love if I got a 10% raise every year, which is pretty much what the credit card company is charging against you since you don't pay your bills.

To Mark in Omaha…

You're laying the blame of high credit card interest on people who can pay off their credit cards every month?

I find your ignorance of fiscal responsibility enlightening…

I agree with you that credit card companies already make money from my use via the merchants…so here's the hole in your theory: If I paid cash the price doesn't go down.

I visited a gas station in NJ that charged $0.10 more per gallon if you used a credit card. Are credit card companies charging 10% on purchases? Not hardly, 2-3% at most as I've heard/read. Where does the other 7% go? Right in the hands of greedy business owners.

I'd like to recommend that you take some economics classes…

As a software programming in the accounting field, I have had the chance to witness this horrible situation develop and evolve. I was right in the middle of the whole event! Sorry, but this Bill is a Joke. There are already laws on the books that prohibit almost everything in the Bill. Either it was cheaper to violate the law, or no one knew about the law.

For example, the law has always provided that the post mark stamp on the envelope is the legal date of receipt or issuance. That is why there is a post mark stamp on envelopes. With Bulk mailing big companies have been able to print invoices on the 1st of the month and let them collect dust for 7-10 days before delivering them to the Post Office. Same thing happen when when you mailed your check in. They would thru it into a bin to GUARANTEE that your payment is late. Now, they can continue this practice.

Almost all states have Usury Laws on their books capping interest at 24 or 25%. We need to have states enforce this.

What we need is an Accounting Bill that applies to ALL companies. And, we need CPA to protect consumers by not stamping audits without checking. We also need the bill to severely punish violators. I didn't see anything in the Bill about penalties.

Sorry, but this Bill looks like the Credit Card Industry wrote it. People feel something is happening, and there are a couple concessions, but in the end it will be worse then before.

But, more importantly we need changes in Congress to stop Lobby Industry from using Congress like their personal puppet.

i payed my bills on time and a/e decided to cancell my credit card.. i paid off all of my bills… and its good not to own anyone.. I just live from pay check to paycheck like all americans

I like credit cards. Actually I save money using CCs instead of cash or check. It is not a problem of the CCs or the banks. It is the problem of yourself. Be responsible for yourself, Americans!!!!

You know, you always have the choice to incur debt. You don't have to have a credit card or a home. If your dream is homeownership, then you need to learn to be a perfect money manager.

Brian from Columbia, great post!

While I agree with some of the legislation (because credit card companies do take advantage), consumers have to take the blame too. We shouldn't be spending more than we make, and that is what credit cards allow us to do. If you have to skip a mortgage payment to pay a credit card bill, then you are living way beyond your means. Downsize your house and stop using credit cards!

My parents (and all parents we knew) had one income, one car, no cell phone, no cable, no high speed internet, grew a garden, and watched every single penny without using credit cards. I never felt like we went without. We all need to take a good look at our budget and get back to basics. There is never a good reason to carry a credit card balance. You're just financing lifestyle if you do.

The credit card companies have already slashed credit limits and raised interest rates. These bills are great for in the future (new accounts), but do not help people who have already had their limits slashed and rates increased. I think the government should pass a law that everyone (good or bad credit) should pay a flat percent – example 10% for the next two years and there should be a cap on the minimum payment – example 2% of your balance. My credit score has been affected because the credit cards I had they cut my limit right above the balance and increased my rates to a very high rate. I have good credit, always paid on time and always paid more. I opted to close the accounts, because I refuse to pay the high interest rates.

This "great recession" is the best thing that could have happened to this country.

FINALLY – we are talking about fiscal responsibility. Cause and effect.

If you don't have the money, don't spend it. Can there be a bigger DUH?!?!?

Buying a home is a long term decision – have a long term plan to pay for it!! Make contingency plans and update them.

There is nothing new here. If you don't spend beyond your income and take action as things change the credit card companies won't "get" you.

Let them charge 50%. If they tack on a fee, I'll close the card. So what? I have a debit card and cash because that was in the PLAN!!! None of this happened overnight – it took over a decade and there were a lot of sacrifices along the way (duh!).

What is more important today or tomorrow? Perhaps we'll start to realize more of a balance now…

Based on what I am reading it appears there are a few instances where the consumer was taken advantage of – but in most cases people lived beyond their means… what this report doesn't tell you is that the people who have been responsible – make their monthly payments on time, pay off their balances are going to supplement those that do not – they are going to get penalized by the credit card companies.
The only answer to this is to live within your means.
Hopefully this bill will ease those who were caught in medical situations – but for those of you living the "good life" beyond your means… STOP…be responsible for your – and actions don't make every one else pay for your inability to monitor yourself

What would Tyler Durdan do?

I find it funny how little people actual understand credit cards. Everyone sits and talks about percentages, etc, but I could care less if mine is 50%, it never hits me because I actually pay the bill in full, like you are supposed to. In general, Americans are extrememly stupid and have racked up debt beyong their wildest dreams with credit cards. These arent home mortages people. Get a clue and quite spending all this money you don't have, just to have the newest gadget on the block, which will technically cost you twice what you think you paid since you can't pay your credit card bill.

I find it really discouraging how so many people are blaming the consumer, versus the credit card companies. Increasing your interest rate because you were late one day on another credit card? Taking five days to process your payment, once it reaches their offices, yet claiming your payment was late? It's not about reading the fine print. It's about the way our society refuses to let anyone live without credit. Without a "credit score," forget about buying a house. Creditors want you in debt to give you credit. It's been a poorly run system for way too long. Now, someone go after the credit reporting agencies, who continuously erroneously put the wrong information on your credit report and make it virtually impossible to remove/prove. We, the general public barely making ends meet (and being abused by these companies) are paying off their debts through the taxes on our hard earned salaries. But, I guess for many of you, that's OK. And for those of you who read all the fine print, are perfect money managers, and who have never, ever had a problem paying your bill, you're blessed. However, your hateful and obnoxious attitudes for those of us who have not been as fortunate is uncalled for and arrogant.

What a great start. Kudos to congress for this action. Now, they just need to start regulating the way banks charge overdraft/NSF fees!

Just an FYI. I made one late payment to American Express and they raised my rate to 24.99. I sent a letter and accepted responsibility for my error and asked them to reduce my rate and they did. Thanks AMERICAN EXPRESS!!

The bill ought to reference what is going on currently. Many card companies are raising rates, reducing credit limits since they knew this was going to pass. By the time this passes and takes affect, everyone will have 19% interest rates, regardless of their credit rating/payment history.

Seems many parts of this bill protects dead beats. What about protecting those of us who pay on time. Credit card companies are now going to raise rates on good standing customers just to balance out the revenue they'll be losing in this bill.

The thing to do if your bank raises your rates and tries to pull a fast one is to cancel that card immediately if possible. If You can pay the card off do so and then tell the bank to get stuffed.

I wish everybody would just stop paying on there credit cards then they would be begging for reform the bottom line is some people rob you with a six gun and some with a ink pen

folks there's a simple solution to this …that the rest of the world already knows… dont live beyond your means…. pay in cash…. stop cold the addiction to credit… if you cant afford it DONT PURCHASE IT. even if a small percentage of Americans would do this… the companies would get the idea. THEY OWN YOU BECAUSE YOU LET THEM.

Unfortunately, too many people posting here seem to be operating from the position that companies have to be controlled because making money is bad. That's called socialism and is where we are very quickly sliding in this country.

While I absolutely welcome rules that require crystal clear and easily understood disclosures on credit card accounts, to place severe restrictions on card companies will have very significant unintended consequences. Over the next couple of years, as card companies adapt to these new rules, you will see an extreme contraction in the availability of credit. Everyone wants to act like that is a good thing until it impacts you. In addition, business is business and these companies will work to make their money somewhere else. That likely will mean a return of Annual Fees for credit cards, a product that everyone has taken for granted to be free. It also likely will mean a reduction or elimination in many reward programs.

The bottom line is restrictions in a free market always lead to a less efficient market and consumers always have to pay for that inefficiency.

People are adults at age 18. I am sick and tired of restrictions placed on 18-20 or sometimes 18-25 year olds.

Other than that, these are fair restrictions to the Credit card companies.

MY CREDIT CARD DID THE SAME THING. THE Y LOWERED MY LIMIT AND INCREASED THE MINIMUM PAYMENT. THEY THEN CHARGED ME A OVER LIMIT, MISSED PAYMENT ( I PAYED BUT WAS NOT NOTIFIED OF THE INCREASE IN THE MINIMUM PAYMENT SO MY PAYMENT WAS MARKED AS NOT PAYED) THEY THEN INCREASED MY PAYMENT FROM 0% TO 28% DUE TO THE "MISSED PAYMENT" WHEN I CALLED TO TRY TO RESOLVE IT I GOT A CUSTOMER SERVICE PERSON IN INDIA WHO IGNORED MY PLEASE AND ANSWERED LIKE A RECORDING.

No effect on me short-term. Similarly to "woodchuck" below – my rate was already raised by 10% for no reason. The banks will simply raise rates before this all goes into effect. Long-term, however, some of these provisions are good.

I'm actually a little disappointed with the rule that allows people under 21 only 1 card. Lots of college students (like I once did) use these cards as a way to build credit. By doing so you improve your credit score 2 ways: First you decrease you debt-to-credit ratio, and second, you can build a strong credit history while you are in school. Doing this during school can help you find a nice mortgage and auto loan rate once you graduate.
All this law really does is keep people under 21 from making stupid decision, and hurts the ones that would have used CC's for good decisions.

I had a CHASE card with a "Lifetime APR" of 3.24% "Good for the life of the balance" they said. I transferred what little higher interest debt I had to the CHASE card, and began aggressively paying it down (never late, always well over min payment, etc). No problems or changes for several years.

A couple months ago, we received a letter in the mail telling us our rate was changing to 9.99%. Since I read the fine print notices they send out, I called them immediately. Long story short: They cited 'current economic conditions' and told me the only thing I could do was opt out of the new rate and close my account. The old rate would remain as long as I made min payments.

…so I did what anyone should do, I transferred everything to this card at my 3.24% rate called them back and closed the account. NOW, I make the absolute minimum payment and they can suck my 3.24% rate till 2016.

Moral: READ those statements they are sending out. You CAN 'opt out' of ANY new rate change IF you call them BEFORE they change the rate.

Try as they may, Congress will be unable to legislate away being stupid. Frankly, it's just not in their best interests.

This is one more step toward creating a "victim" culture, where everyone needs to be protected from all the evil, bad men. You lost your job to a cheaper, overseas worker because the executives were greedy. Your house was taken away because some predatory lender tricked you into buying something you never thought you could afford. Your credit cards have tens of thousands of dollars in debt, because the companies gave you too much credit to buy things you didn't have the cash for.

If you lost your job to an overseas worker, what have you done to improve your education and skill set over the first Chinese guy that could push a button on the factory press? What were you doing in your spare time?

If you lost your house when the rate spiked, why did you feel the need to go with the adjustable rate? Couldn't afford the payments, otherwise? Owning a house is a privilege that is earned by saving your money. Until you can, find a roommate and something you can actually afford. Home ownership is not a right.

Credit card debt? Honestly? The companies can't fleece you or confuse you with interest rate promotions if… you don't buy things you can't afford. Suck it up. You're not Diddy or A-Rod. Forget the fancy clothes, don't even look at the Escalade, and skip the dinner reservations. That means Wal-mart, a used Ford Taurus, and a sandwich in your kitchen.

Or, you could vote in people who blame the evil, bad men and promise to punish them and make everything OK for you. Good luck with that. We'll just go back to a time when the companies can't afford to employ you, the mortgage lenders won't give you a loan, and your credit cards… well, they'll still have higher limits than you can pay off.

Oh, wait…

Hopefully the smart CC companies will realize that if they don't raise their interest rates that they will be getting all the business after the other companies raise their rates. Better yet for the CC companies that don't raise rates is they will probably also get balance transfers added on their accounts from the cards that raised the rates. If they're not all greedy and don't raise the rates they could probably benefit from it.

Socialism here we come!
I really disagree with parts of this legislation. I am a responsible user of "credit", I don't carry a balance, have always paid bills on time and in full. The bottom line is that credit card companies will get their money one way or another. Now that they can no longer penalize late payments etc, the will raise EVERYONE's default rate to recover the funds they have lost. Again, spreading the repercussions of frivolity of the few amongst the many.
Tell me how this is fair?
Exact same senario for housing……

I guess I don't see the big difference in these credit card companies imposing penalties and the government imposing taxes on things like cigarettes. In both cases you're preying on a vulnerable group for the sake of revenue. You could argue that these penalties serve as an encouragement for people to act in a more fiscally responsible manner.

What used to be illegal — continues.
Let's see, you lend me your money and I'll pay you 2%. Oh, you want to borrow money, that'll be 29%. Fork it over.
Our representatives continue to demonstrate who they work for. Maybe the French had the right idea during their revolution. Sharpen the knife!

When this new legislation was announced, credit card issuers immediately enacted changes to existing accounts before the legislation could effect them. Chase raised my rates and made my accounts varaible rate rather than fixed, Discover lowered my credit limit by $2,300 stating that I had higer balances on other cards (not Discoover) I have never been late on any of these accounts and always paid over the minimum. When you sign a credit card application and are approved, it should be considered a contract just like a mortgage loan- it should not change at the will of the creditor. Additionally, all legislation should be retroactive for 18 to 24 months so that the creditors who jumped before the new laws could touch them will be forced to comply and return good customers credit back to where it should be. It seems to me that in a very poor economy, creditors should be working with consumers to make things easier and help prevent default, they win and the consumer wins because the consumer doesn't default and the creditor still gets paid. When faced with the added pressures of higher payments and higher interest rates, people will just walk away. Having a roof over your head takes priority.

This is nice, but too late for me. When the banks/card companies DOUBLED the minimum payments in July of 2007, I did my best for a year and a half to meet those new payments. I used up my savings, my kids' savings bonds, and everything else I could do to make those new minimum payments. Finally, I skipped a couple of months of mortgage payments in order to keep up with the credit cards, and then I had to double-up on my mortgage payments to catch up, which means skipping the card payments. I was able to do all of this for a year and a half, but now its all over. I am ruined. It would have been one thing for the card companies to say that from a certain date they were going to DOUBLE the minimum payments on any new purchases, but no, they had to go back and pick up the (admittedly very large) existing balances and double the minimum payments on the whole amoung, and also raise the rates on the whole existing balance, not just new purchases. I used to have absolutely perfect credit scores, but now I am done for. Bankruptcy is the only way out, and I abhor that thought.

It would be nice if they could do something about the credit card companies that have already hiked up the interest rates. I have credit cards that have increased to 26% and then they lower your credit limit sometimes to a place where you will get an over the limit fee. What will they be allowed to do over the next year?

Too bad this is a little like closing the barn door after the cow has left. These credit card companies have already hiked their rates on cards even when people have not missed payments. This will help new card holders, but will do little for those that are already being raped by the same companies we bailed out with our tax money.

"eliminating credit cards for people under the age of 21 unless an adult co-signs or they can show proof of income."

Shouldn't people of any age be required to show proof of income??? Banks have been more irresponsible than consumers have been and I'm glad they are finally having to play by the rules. Next, credit cards should be included in bankruptcies again so that banks have incentive to only loan to credit worthy people.

About time they stop some of this crazy stuff. I was helping my brother out who could not get credit and got a card with a low fixed rate for a year. It was used for single purchase and he was easily going to pay it off in a year. About 6 months in they jack the rate up stating some fine print about inactivity. Too bad for them I could pay the card off and cancel that card as well as mine personal one that I paid off every month. I really feel for the people who did nothing wrong and the banks still try extract more money.

This is not a victory for consumers. This is a victory for people who don't pay their bills. Just wait until we are subsidizing all those who make late payments when the credit cards start adding charges to make up for the money they are losing.

How about taking the money you gave to these dealerships that are still going out of business and pay all credit card debt off. Maybe some good would come out of that. Just think about banks might be better off.

I use credit cards I love it. If you are responsible and take care of your finance real good your credit cards are your best friends!

The legal age of majority is 18 in almost every state. The restriction on credit should be tied to the age of 18 and not 21. There are many young people between 18 and 21 who have jobs and are responsible adults, including those in uniform.

QUOTE: "Why, just yesterday I received a notice from Capital One informing me that my interest rate was going up to 23%. I have never made a late payment, I have been a longtime customer, so what is the reason for this? The notice cites “the challenging economic environment.” Apparently, they’re not concerned about MY challenging economic environment, only their own. This is complete bull****."

Yup. Same thing here. Never been late for a payment and always paid in full. When I called them up to see if we can work something out, they were uncooperative and uncaring about me as a customer. Needless to say I cancelled the CC since I can't support a company who has total disregard for me like that.

Oh, and funny thing, that same week I got in the mail "sign up for our Capital One credit card with a low low introductary rate". wtf…jack up a long term customer's rate but give some new guy a low rate. Please.

This won't change anything. One way or another these companies will ensure they maintain their revenue stream. All these laws do is shift the fees on to someone else or increase the fees across the board. Probably one of the worst results of this will be an increase in how much they charge businesses for these transaction costs. In some cases it's already 3-4%, and you're paying for it!

Boy a lot of bashing on here. I purchased a home for myself and my children. After 6 months of paying my mortgage my house payment went from 615 1035. To keep my home I made this payment for a year but lived on credit to do so and now am stuck in the credit cycle. Don't you think if I could pay off the card every month I would??? HELLO?

Here is the problem. The people who are complaining are the ones that were living beyond their means. You were spending more than you were making. Guess what folks, the party is over. Did you really think it was going to last. Excess created this problem and YOU were part of it. You are just as guilty as the banks. You created a problem for yourself, and now, when it is coming due, you are angry. No sympathy here. The reason why the rates are going up is that there are SO many of you. How is your plazma screen TV now? Making 40K a year and spending 60K is going to catch up with you.

As well, VISA, MC and AMEX are offering you a service. It is a privlidge, not a right. They can charge whatever they want. They want to charge 30%? DON'T GO INTO DEBT. They want to charge 25%? PAY OFF YOUR BALANCES. There is a simple solution, and that is acting responsible. For the people that are ticked? I get it, but it doesn't affect you, so why worry? You should blame the others on the post. It is their fault this is happening.

I find it quite humerous for the people in this forum to start out their comments with "I'd like to state up front that I am financially responsible" and end it with "here's how we use credit cards". That is an oxymoron. If you use credit cards, you aren't financially responsible.

I'm one who charges almost all my purchases on my B of A Alaska Airlines credit card, then I pay it off in full each month. I already pay a $75 fee per year to earn one mile per dollar and a $50 companion fare.

If anyone from B of A is listening: If you start charging interest from the day of purchase, ie no grace period, I will cancel my card and go back to exclusively using my Credit Union credit card, which I sincerely doubt will eliminate the grace period. B of A will not earn merchant transaction fees every time I use my card.

If the big banks eliminate the grace period, I will encourage everyone one I know to follow my lead and only use cards from credit unions.

Hypathia in Seattle wrote: "Please realize that many of the people posting here really come off as holier than thou. Many of us that had credit debt did not have a choice".

This is a great point that many people ignore. Not everyone who has credit card debt is irrespsonsible or "trying to live beyond their means". In an age where the cost of living has soared and wages stagnated, living without a credit card is easier said than done. It's truly great if you can do it. Some of us aren't that lucky. Virtually all of my credit card debt is from A) medical bills, or B) auto repairs. Neither one were something I wished for, neither was enjoyable, and neither are something I wish to repeat. I pay off more than my balances, and after making a large payment recently, I got a letter from the credit card company asking me WHY! They moaned that they were afraid that my large payment meant that I was paying off the account, and they wanted to "keep [my] business". Huh? if you don't pay, they scream ,and if you do, they moan. And I won't even get into people like Bank of America deliberately failing to mail out statements so they can slap a late fee on you. The banks helped us get into this mess by extending credit to unqualified buyers, and now they want to keep on bilking people.

i think the under 21 is rediculous. i would say 18 is the max. what about people who go out into the work force and dont go to college? they are going to need to start building credit so they can eventually afford to get their own place. unless the FICO rating system is severely changed to compensate for any of these new "laws" many people are going to be royally screwed because credit is going to become even tighter!!!

OK, the government is going to regulate credit card contracts. Now that the bill is passed. but not yet enacted, guess what these banks are going to do – THEY ARE RAISING THE RATES TO THE MAXIMUM NOW, BEATING THE EFFECTIVE DATE IF THE NEW LAW.
Too bad our elected officials couldn't see this coming and made the law retroactive 90 days for rate raising.
Now most 10% to 14% APRs will be jacked up around 8% to beat the new law.
I wonder which lawmakers have a stake in the credit card issuers?

Why is it that we all think that we are entitled to a credit card? Maybe people would be happier if no one took the risk and no one issued credit cards. Maybe the country would be better off if we were all forced to use cash. I hope we're all ready for that.

Susan Belfast Maine: May 20, 2009 11:47 am. I work for the bank too! How funny. I love your post and couldn't agree with you more!

Yay! More Government Control.

The eight scariest words in the English Language are "I'm from the government, I'm here to help!"

America – Take OWNERSHIP of your own life. Be RESPONSIBLE. Don't RELY on the government. Be PRODUCTIVE. Take care of your OWN family. And maybe we can't keep the government from doing it all for us.

Ladies and gentlemen, this is all good that the bill calls for it. But remember, anytime that a bill is passed the power to regulate that certain aspect of the citizens' lives is given to the Federal government. Most laws can be avoided by having a good social education structure in schools. Teach kids the basics in kindergarten instead of making the finger paint! That's ridiculous that our kids learn to drawn stick figures rather than be socially responsible people. All of the things mentioned above make sense when a parent is teaching children about life and credit responsibility. Nevertheless, such things should not be law for both the Republicans and the Democrats are helping consolidate power in the Federal government.

It's highly probable that when it is all said and done, Congress (with the help of Acorn threats) will also enact legislation that these credit card companies will have to give credit to the same irresponsible slugs even though they will never pay for it. We will pay for their credit card debt as well as their mortgages.

From from each according to his ability, to each according to his needs – this is Obama's new world order that is steamrolling over this country. He makes it all sound so good (he will take care of us and put it to the big greedy businesses) and he will never take the tough questions. We (meaning all of us) better call our representatives on a daily basis.

I'm not too happy about the 'young adult' rules. I went to college when I was 17, and had one credit card. However, I had to use that credit card to buy books, pay for the few off campus meals I had and other necessities. All money I made from working part-time on campus went to my car and credit card bills. If I didn't have that, I would have had to borrow from friends and family to get by. When I graduated, my credit card balance was approx. $7000. So when I got my first job, I got it paid off quickly and never had a balance again. The moral of the story for college kids is that only one card is necessary, only use it for bare necessities and keep working at paying it off.
We don't need government overseeing us in that much detail. If the young adult portion of the bills were passed, then I would never have made it through college.

Just be prepared. The credit card companies know this passed too. I received my notice yesterday they are bumping my interest rate. They are going to get it in before the laws go into effect.

I hate credit cards with a vengeance but I am against taking away a person 18 or over and under 21 right to have a credit card.

This old hippy fought hard for three basic rights when we were quagmired in Viet Nam. Understandably at the time we had a draft and little say over what congress did. But all slopes go downhill. Here is what we fought for and won.
1) The right to vote at 18 so we had a say in what was a legal war (or Police Action).
2) The right to consume alcohol at the age of 18. Anybody that is in a position to risk said life for their country should be able to have a drink before. Killing people is hard enough with alcohol.
3) The right to have credit at or after age 18. If this person is in a position where service may be required they should be treated as an adult all the way!!

You may say that we do not have a draft currently and the services are all voluntary. I would agree if we had a healthy economy but with the reality kids are faced with after HS (Those who graduate) the service is sometimes the only chance to get ahead. Additionally as I understand when a person turns 18 they are required to register with the government for the draft.

We have lost a lot of our youth in good and bad wars and we should show the respect that any adult is due. I know of certain people that actually took our country to a questionable war that were themselves experts in the deferment game. I believe the quote went something like "I had more important things to do" and it was repeated about 5 times. While some others found sweetheart jobs and then did not show up.

We are Americans and we show respect to those that may serve. If they do not realize that they are important they will not have the will to protect us. I hope that registers with the people of my old age of 55.

I'm really disappointed with how narrow minded these proposed changes are. The idea behind them is a good one, for sure, but take for instance the only 1 credit card for a college student.

As a student I have two credit cards and am considering opening a third. I never carry a balance and don't use the cards for financing. What I do use them for is insurance. I have a visa specifically for the coverage that is provided by the card when renting cars (for interview trips and such) I have a discover for the perks (but can never use it anywhere). I was considering getting a mastercard for if I needed to go overseas (where I'm told its easier to use than a visa)

I think that there are plenty of good, reasonable reasons to not want this regulation and I think the answer is to help inform and educate credit card holders (which obama talked alot about in his campaign- this idea that we would educate teenagers on responsible financial decisions) not to slap the cuffs on credit card companies.

Everyone's credit limit will be lowered except for people who pay off their debts in full. This is the only way the credit card companies' risk can be reduced in line with the reduction in revenue. This will tighten the available lending market. This is good for people who have credit lines in amounts more than their annual salary; they should never have been given those lines of credit in the first place. It is going to be bad for the the state of the economy in general in the short run.

A better solution would be not extending massive credit lines to anyone w/o a proven track record in the first place. Where is the income verification clause for new applicants or applicants with bad credit scores? People who are defaulting now and in the past are the reason why the credit card companies have been practicing these deceptive processes that sometimes hurt people with good track records but ALWAYS catch the the people with bad payment track records.

The people who state they had a "medical emergencies" and had to run up the debt they could never have paid for even w/o the rate hikes will now not have the option of running up debt to pay for these "medical emergencies". I guess they will complain now they cannot even get the ability to run up the debt.

I am all for ending credit to people who cannot pay debt back. Obviously, this will not hurt people who have no credit card debt. This will only hurt people who have struggled and made good progress (paying at least 3 times the monthly minimum) for months or years but still have residual balances. Meanwhile, the people who are going to default will now owe a little less money after Chapter 7; MONEY they were never going to back anyway.
So what does this mean? Credit card companies will be writing off a little less debt and passing more of those costs to the guy who struggles but does make ends meet.

This bill is not helping me right now Chase has started raiseing my APR from 8 to 24 on my three cards.

The Credit Card Accountability legislation is a step in the right direction, but does not go far enough.

And yes, I agree, Chase is a band of crooks and should be prosecuted.

IF YOU ALREADY HAVE CREDIT CARD BALANCES, THE COMPANIES ARE GOING TO RAISE YOUR RATES AND SCREW YOU BEFORE IT BECOMES LAW IN 2010!!! THEY NEED TO MAKE IT EFFECTIVE IMMEDIATELY. I HAVE ALREADY SEEN IT HAPPENING ON FIXED RATES FOR THE LIFE OF THE BALANCE TRANSFER.

I've also had trouble with Chase. They cancelled my promotional rate without notice because of a late payment on another credit account, not the Chase card. My rate went from 4.00% to 24.99%. I used the government website, http://www.occ.treas.gov/customer.htm, to file a formal commplaint. Chase reversed its action promptly and reimbursed me for the interest.

The young adult section seems to be taking it too far. If a college student cannot get their own credit card how are they suppose to establish credit? A college student can be anyone between 18 and 100 years old. A college student’s income can change drastically from one year to the next increasing or decreasing 10k or more. This sounds like it will result in millions of college grads leaving college expecting to finally get a decent car, finally get a decent apartment/house and told they cannot because they have ZERO credit. Limiting them to one credit card sounds good for typical college students but not for the 30 year old with a family to feed.

Not allowing CCs to those under 21 is completely unfair. This country needs to figure out what the "legal age" of an adult is and stop having different ages for different things. I bought my first car at age 19, and my own house at age 22. I was unable to buy a car any sooner because I didn't have enough credit history! If this law was in effect I would not have even been able to buy a car at 22!! Both of my parents have horrible credit, so a co-signer was and is out of the question. Everything was done and paid for on my own.

I find it funny that an 18 year old is trusted with choosing who should run the country for next 4 years (vote), but can't be trusted with more than 1 credit card.

C'mon Brian from Boston…

Lawn service is much more of a 'one off' transaction. Credit cards are ongoing for years. To think that the credit card company should be locked into a rate is unreasonable. Sure, 45 days is more reasonable and 15 is probably not, but the two are not really comparable. Any longer term business contract must allow for changes, economic or otherwise as time passes.

To all of those that pay off balances every month – YOU are a big part of the problem.

The banks loan money to make money – since you don't pay anything for your free 30 day loan, the banks don't make any money from you. They get partially paid for their expenses from merchant fees – which raise the cost of everything everyone buys – so you can get your free loan.

Meanwhile, anyone that actually needs to borrow money for an emergency or unplanned expense pays dearly for your free money. And if the banks want to make higher profits, why not just charge more since their customers are over a barrel anyway.

The reality is, if you don't pay off your entire balance this month, you will probably never be able to. I currently have one credit card, where if I make the bank suggested "minimum" payment, the balance goes up. If people like me are their target customers, why is anyone surprised that there is a problem?

BUT WHY IS MY CARD ISSUER(WAMU/CHASE) STILL CHARGING ME INTEREST EVEN IF I PAID OFF MY STATEMENT BALANCE??? WHY THERE IS NO REGULATION ON THIS???

Too little too late. I just received notice that my always paid on time account is going from 11.99% to 18.49%. Of course I could not accept those rates but then they would close my account which would hurt my credit score. The notice literally says that this is due to maintain profitability on my account. I give them $20 a month in finance charges on a promotional balance and never use the card, so they are getting $20/month just for sending me a bill in the mail. I wish someone would send me $20/month for nothing. That's not profitable? It should just say "we feel we need to steal more money from you so we are jacking up your interest rate and there is nothing you can do about it"! My solution: paying off almost the entire balance and leaving $25 on it. That way I am not getting whacked with unfair finance charges and my available credit doesn't get shut off and my credit score doesn't go down.

It is very sad that we have people make comments on this blog that complain about credit card companies and how they are screwing you all over. I think credit card companies are scum as well, but I choose not to use any of them. If you go to a restaurant for dinner with your family, and you find dead bugs in your potatoes, do you continuously go back to that restaurant, and just complain to coworkers how bad you have it each time you go? No. You stop going. Most people know that all credit card companies are scum, so if you are dumb enough to use them, that should take away your privledge to complain about them. Live within your means and buy what you can afford, and yes, that means your car too.

Eric in Kalamazoo–Chase did the exact thing to me! Although we had a balance, we had paid our payments on time. They claimed our payment was one day late…raised our rate from 9% to 24%! Even if the payment was one day late…why should that warrant an over 100 percent rate hike? It really should not.

This bill will protect those consumers who are still able to qualify for cards. Qualifying will become more difficult and standard rates will increase for everyone. Frequent flyer miles and other such perks will disappear and there is even talk of charging interest from the moment of purchase rather than allowing a 30 or so day grace period as is the current practice. I hope people are prepared to go back to cash-only transactions.

I guess the bill means nothing for me as it apears that almost any account I have, has instituted an increase, closure, or limit reduction in anticipation of this bill. I had one that recently indicated that my rate would hit almost 30%, luckily I have no balance, but this is with a decent credit score and no lates in over 9 years. The rate increase was said to be done so that they could remain competitive in this environment, all they did was make sure that I won't use their card and pay them any fees, don't know how they will make mopney on maintaining my unused account.

We should all toss these nuisance cards in the shredder and pay using cash from now on. That's when you will see power going back to the consumer again. We are doing it to ourselves!

It is interesting to me that the only way the GOP would approve this consumer protection credit card bill was to add a clause the you can now carry a concealed weapon in a National Park. I guess credit and gun control go hand in hand?

The smug people lauding their own responsible behavior with credit should realize that they are one serious illness away from financial disaster. Insured? Fine, until you can't work and your insurance disappears with your job. Not everyone maintaining a balance is irresponsible, and even if they were, they still deserve better than universal default and other gotcha business practices.

Don't chastise those with nowhere else to go but the credit card….not all of them are buying what they cant afford, some like me are buying the necessities of life; food and gas to get to and from jobs that pay wages that do not keep up with the runaway price increases in those and other budget items. I have credit card debt, used to pay as I went until I could not provide anymore for the family. Why do all of these remedies that Obama comes up with, stop short of doing what really needs to be done…these companies need regulation with some teeth in it. Put a freeze on credit card interest rates or better yet, impose a 1% interest rate on all credit card companies until the existing balances are paid and limit what can be charged in the future…this is about saving families, homes and a way of life, stop the Mickey Mouse fixes that take place too late and or aren't retroactive…these companies have been predators for years and even more now when the country is on it's proverbial knees!! People are losing jobs,homes and families are falling apart right now…not time to worry about hurting the card companies because when we all get on our feet I hope they fall right on their greedy faces when people learn what they are really about, dont know who is more of an enemy…credit card companies or our enemies in Iraq and Afghanistan!

Great post Hypathia from Seattle, WA.

Rooting for Capitalism is one thing, but those who do, must have the intellect to differentiate between Capitalism and downright cheating and stealing. The Credit card companies have all these years (with the help of Republicans) stolen from people – they never worked an honest day in their lives.

Shame on Republicans who have been supporting these thieves for so many years at the expense of the consumer.

Insanity. That’s what this bill is.

It’s not the government’s job to tell me how many credit cards I can have. It’s not the government’s job to tell banks who to lend to (that's how we got into this mess in the first place). The credit card issuers are doing only what their contracts say they can.

It’s simple. If you don’t like the terms of your credit card agreement, cancel it! Don’t use it! It’s not rocket science. No one is forcing you to have a credit card.

My God, we’ve become a nation of simpleton lemmings and the government is pushing the populist angle as hard as it can. We’re getting exactly what we deserve, of course, for electing this bunch of idiots (same as the last bunch of idiots).

Go ahead, America, keep letting the government nickel and dime your freedoms away.

Our founding fathers would be disgusted.

Why the wait until implementation? If the credit card companies can raise rates after a 14 day notice why can't the reversal be true? To wait puts less money in peoples pockets which means less money to spend to help the economy. Let's think of the common person for a change.

I am so glad that these bills are addressing Due Dates.

I use to have a Discover card. Back when I did, I would receive my bill only a few days before the Due Date. Upon getting the bill in the mail, I use to have to grab my check book and rush to the Post Office in an all-out attempt to get my payment to Discover in time.

The final straw was a monthly bill that not only came after its Due Date, but the post mark on the envelope showed that Discover mailed it after its Due Date. Yep, it was mailed after its Due Date! Could you imagine how to even go about proving that if it wasn't for the Post Mark as evidence?

I am sure that Discover does this to other customers too!

no one was forced to "sign on the dotted line" when is this country going to wake up and smell the responsibility for yourself

Get an American Express CHARGE card and be done with credit cards.
No interest, only an annual fee.
But remember, you have to pay it off every month.
This card is not for those who cannot live within their means.

As to the comment about "processing fees", the networks that are used to process transactions aren't free to build and maintain.
Your card does not magically authorize itself when they swipe it.

While I agree that some of the rate hikes and fees are insane, most card users get in trouble because they failed to READ the contract they signed when they got the card.

And when a credit card company jacks your rate up, cancel the card. Make your payments on the remaining balance and don't ever use it again. If enough consumers did this, the banks would run out of customers in a hurry.

Bank of America already raised my interest rate from 9.99% to 19.99%. And I have good credit. How does bill help me now when my interest rate was already increased to beat the implementation of the legislation. Too late. I pay on time, don't go over my credit limit and don't take cash advances.

I am very happy with the new changes – especially the one regarding minors. I can remenber when my son was 15 and received a credit card application in the mail. I was appalled. Greed brought them where they are today. It's their own fault!

what about when credit card companies lower your limit below the current balance and then start charging you over limit fees? this has started happening as credit card companies are re-evaluating consumer credit. makes sense to lower the limit, but the fees should be waived for the existing balance. ample notice should also be given if this is going to happen.

lately – i've been getting letters that my unused cards are being closed AFTER the date the letter says they're being closed.

consumers have a lot to own up to when it comes to credit cards, but the companies go out of their way to enable poor consumer choices and benefit from such.

Both the credit card companies and the consumers deserve this. The consumers got screwed because they thought they could live above their means forever. Had they not done that they wouldn't have had the problems that led to this legislation. And the banks are going to get screwed now because they thought they could do whatever they wanted and impose crap in any way they wanted, and that's immoral, period. Nobody cares if it was legal or if they thought it was right. It's not, it's wrong, period. That's why I carry a debit card, a credit card that I have to pay off every month, and only one other credit card that comes from my credit union who doesn't pull these stunts on me.

All the self righteous self reliant people commenting here would ruin capitalism and our economy if we followed their advice.
Money is an idea, a concept, a somewhat arbitrary number assigned us by some shady characters in a secret bunker somewhere, called our credit score.

The stock brokers were trading fake money, the accountants were reporting fake earnings, the consumers were reporting fake salaries, the SEC was being run by the banking system, fat cats in fancy suits got ridiculously wealthy, everyone else lost money.
So all you thrifty people who are looking down your nose at the majority of Americans who were caught in this economic mess(I belong to neither party)the scoundrels are not your neighbors who wanted to live in a nice home with a yard. These people are victims of the business of fake money. Their debt and struggle was funneled into the bankers pockets, through deception and greed. Frugality and financial responsibility are wonderful traits. Our society and our economy thrive on our desire to have more and do better than our parents.
Your insincerity to the plight of these victims is merely means for you to pat yourself on the back and declare yourselves better than everyone else. Congratulations.

Eric, YOu point out a good point, what credit card companies are doing is legal. It is all in the fine print, everyone signed it. So these companies are not thieves, they are not doing anythign illegal. If the fine print wasn't fair then you shouldn't have signed. And if everyone had done this then we never would have gotten to this point.

Nice of the government to step in and try to reign things in, but it's probably too little too late for most people. I hope everyone just takes this opportunity to pay down/off their credit card debt. The economy will pick up again and the bank/credit card industry will be right there waiting to cash in. It would be great to give them a huge collective middle finger and tell them what they can do with their cards since they chose not to stand by their customers when the going got tough!!

The Banking Industry has been charging usurious rates on credit card loans long enough.They should be pleased that they have not been subject to State Criminal Usury laws and have avoided limits on the interest rates they can charge under the present legislation. They are now the single greatest impediment to economic recovery and consumer spending.

Come on "Capitalism". Yes, I agree, people should only use a credit card if they can pay off the entire balance every month, but the credit card companies are abusing their power. Whoever provides your lawn service gives you a quote, and charges you that rate. That's fair. A credit card company gives you a rate, and then raises how much you have to pay on that balance in the middle of the contract. That's not fair. And simply closing the account and switching credit card companies is not that cut and dry, since there can be severe implications on your credit score if you have to do this over and over (although in a free market, you're supposed to be allowed to shop around without consequences, right??). If you switch lawn care provider, that has no effect on the interest rate you pay on your next mortgage. Don't try to compare lawn care service to credit cards.

For those that say that the banks should do whatever they want and loan money at whatever rate they want; you are missing the point. True, banks should offer the service at whatever rate they want. However, to retroactively apply higher rates to something that was loaned out at a lower rate is no better than loan sharking. Believe me, if banks could legally send someone to your house to break your legs to get paid faster they would at this point. The bottom line is that any bank or company dealing with billions in revenue each year is usually not very good at regulating themselves. Has anyone noticed that the key banking culprits that set up a glass economy based on reselling home loans 15 times over are not truly being held accountable? In fact we continue to give these institutions money which is essentially stating that they can continue to take stupid risks and make major mistakes because we'll bail them out. I wish I could have that kind of safety net when I go start my own small business! By the way, not every consumer was greedy, buying BMWs and such. There are plenty of folks out there trying to survive with cancer treatment bills and other very good reasons for having debt.

Frank in Orange County. Chase has been trying for the last 5 years to raise my rate froma 6% fixed to 24%, saying I missed a payment in Nov 2004. Yeah, I pay $0 to a CC in Nov 2004, on a $0 balance.

Chase is a bunch of crooks and should be tried for treason and hung.

I believe the best part of the plan is the one card limit for college students.

I've just graduated college and racked up ten credit cards during my undergrad career. Maybe I should have been a little smarter with my spending but at least the temptation is limited. Maybe there won't be as many college graduates ridden with debt when they enter the workforce.

I'm happy that people 21 and under cannot get credit so easily. Especially without any kind of credit education.

We as a country, as a people, NEED to recognize that we cannot live a lifestyle based on credit. It forces us to consume beyond our means. While it inflates the value of our worth.

Also, the credit card companies could care less about their "customer" and more about themselves, in turn, raising rates and lowering limits on good customers. I could care less about them.

I say, we'd be better off with even more strict standards.

Finally, The traps set out for the poor are being dismantled. It's nice to know big brother is protecting it's citizens. Instead of compaining, you should appreciate this notion. After all, "You are your brothers keeper." Why are some people so opposed to people that care for their fellow man.

All of the reforms are well and good but what about the rates that have already been hiked? Almost all credit cards issuers have already taken care of gouging their customers with rate hikes so this new bill only helps the new applicants.

They should also address the fact that if you pay too soon (even a day) which was my case, they place the payment into the period before and here you are thinking you paid this month. ON your next bill you have a late fee and your interest goes up. When you call them (Bank of America), they tell you that you shouldn't have paid before the 7th, a certain detail they omit in telling you. Demonic loop holes to steal your money.

Devon from Fontana CA…

It would be a whole lot easier to pass a federal usury law. Do you hear me, South Dakota, Delaware and Nevada??? Also, I am disappointed that this bill does not address the practice of "double-cycle billing" that allows a credit card company to charge interest on a balance that was paid in full in a previous billing cycle. The increase in fees, new loan rates on existing balances and tricky billing due dates (one of my credit cards say by 10:30 a.m. on the day the bill is due) are all ways that conniving credit card companies try to squeeze all users of credit: the responsible and irresponsible alike. Consumer action is not a viable alternative since every major creditor has similar practices. I think this is called collusion.

I have to say this is a great thing. FINALLY!. I have excellent credit and did so in the past. I had a credit card through Providian bank with a 5000.00 credit line and it had a balance of 1100.00. I was staying in a hotel at thanksgiving several years ago for a family holiday gathering. The day before I left I checked my opening credit and balance. I checked into the hotel. The first night, no problem. The second night my card was declined. Surprised, I called Providian to find out that the day before they decided to reduce my available credit to $800.00 with no notice and that I was to fork over the additional $300 immediately because I was now over my limit and they charged me a variety of fees. I fought them on it for 9 months and got nowhere. This shouldn't happen to anyone. By the way I also had a Gold Amex at the time and am still a card holder at a higher level and have NEVER ever had anything but great service from them. No person should have to go through what I went through with Providian. Eventually they were bought by WAMU which was merged with Chase recently. But this bill is a great thing to help consumers. Face it we are a debting nation and as much as you all want to preach about 6 month reserve savings and all this other stuff. There are many people who can't get that amount put away and if they are going to get some relief by changes in the way card issuers take advantage of consumers, then they are entitled to that relief.

12 months or 9 months until effect is TOO LONG. This must be passed with an immediate effective date. What is to keep these thieves from making changes the day before the deadline, knowing that change will be illegal then next day.

Anyone who works in the credit industry is going to hell anyways.

As evil as credit has become it is still needed unless your paying cash for your car your home. most people who are in debt and default are using credit cards for healthcare.

These credit card companies (citi) are the same banks that we "own" thru TARP.

This legislation isnt preventing the Card companies from making whatever they want. It a start from preventing them from changing the rules of the game mid-course and breaching a contract.

not everyone drives a bmw

I am a 28yr old professional and will admit that I was one who was not good with my CC's until recently. Coming out of school is tough on the wallet. I couldn't imagine how folks get by on low salaries with families. I couldn't afford to have kids right now.

All my debt was MY FAULT. I had a great time spending and not worrying. Until my monthly minimums shot up from about $300 a month to $750 a month about 6 months ago.

The credit card companies eliminated any excess room on my spending limits causing my payments to skyrocket. If I had a balance of 5k and a limit of 10k, that extra cushion went bye-bye. I first noticed it on a card with about 5k balance on it, then I saw it go to the rest of my cards.

Luckily I noticed this when the credit crunch was happening. I paid what ever I could to make my payments manageable.

I have not used a CC in 6 months and it feels great! My balances are still high but I'm getting by and am paying them off. Hopefully they don't keep on lowering those minimums.

All those that say don't use credit or be responsible are correct…However it's easier said than done. Once you're in the hole it's nearly impossible to get out. It's not like most people can just come up with additional $$$. I was lucky that I still had my job and was moving up the ladder.

The housing bubble was created by people trying to live above their means. They took out huge loans with little to nothing down. They were banking on the house going up in value to pay for the mortgage down the road when the introductory rate went up. This philosphy is what led to the large increase in housing prcies. We artificially raised the home prices, we are to blame for everything. We took out the loans, we signed on the dotted line, we paid the extremely high prices. Don't blame businesses, if you don't like a product from a business don't buy it and they will be forced to change. Thats capitalsim, what the country was founded on. If people are too dumb to take care fo themselves and see obvious scams then shame on them. Scams will always exist and the same peopel will always fall for them no matter how much regulation is pushed through.

Bravo to Susan Belfast from Maine! Someone that gets it!

The only thing that the Congress did wrong was giving the Credit Card companies so much time to get it together. By the time the law takes effect, the CC companies will have raped and pillaged the consumer for everything they can. Thank You Congress for destroying everyones credit.

AMEN GIRL!

Well, this does us no good now. the credit card companies have been making a mad rush to my accounts to raise all the interest rates on all my cards. I always pay more than the minimum due and have never ever been late on one of my credit cards. I applied for all at below 9% FIXED RATE and now they are all 13.99 to 15.99%. I don't imagine they are going to decrease any of those interest rates with this new legislation. So they've already taken care of raising my interest rates now so they are already high by the time this act is in effect. Credit card companies are punishing those of us that keep up our accounts. This is really bad business. It seems to me that Chase is buying up all my credit cards, and immediately raising my interest rates. Can someone explain why this is happening to good customers. We pay for all of those who don't pay.

I don't really like the stipulations against people under 18 or especially under 21 being limited on how many cards they can have. Young people need to build up credit as well. Also an adult, that is someone over the age of 18, should be able to have as many credit cards as they want. The federal government limiting them to only 1 is going too far in my opinion. It's a nice idea, but there may be any number of reasons a young person needs multiple cards. A gas card, a credit card for travel, etc. Especially if someone is a legal adult, they should have the ability to apply for as many cards as they choose. The rest of the new laws should help protect them against the credit card company.

This is not about legislating financial responsibility! This Bill (soon to be LAW) prevents the credit card companies from continuing their S.O.P. of abusing and stealing from the consumer. To you credit card company defenders, how do you have the unmitigated gaul to defend practices designed to keep the card holder in debt as long as possible and practices which take a "reasonable" 8-10% rate and explode that to 39.9% should the card holder send their payment in a day late. I have no sympathy for the credit card companies, who are such soul sucking monsters that they can't even employ American workers in US call centers and instead opt to outsource those jobs to India and Pakistan where they pay those employees one tenth the wage to provide service that's nowhere near the same quality. This is legislation that's LONG overdue. And PLEASE- ALL OF YOU recognize those that deride this Bill for what they are- Shills and whores for the financial lobby, NOTHING MORE! Not patriots, not conservatives- but simply Shills and Whores who are already bought and paid for.

Please realize that many of the people posting here really come off as holier than thou. Many of us that had credit debt did not have a choice.
Example: I could not get money for college and I could not get a better job without a degree.
I took the lowest rate credit card I could and paid for school while working full time and repaying the debt. No I could not get loans or grants: my family's income, while they would not help me financially, hindered me from qualifying for monies.
Since I aspired to have a better job than fast food counter help I took advantage of credit to get me my degree and a better job.
Realize as well that while you have the means now to pay off what you use every month what would happen if suddenly those means were gone.
You still have to feed a family and provide. Then comes the yoke of using the credit card and then having to pay interest.
It's all fine and good to be perfect about your credit but sometimes circumstances prevent people from being such.

My husband and I are sick of big corporate banks that take advantage in any way that they can.
We are ignoring the advice of credit counselors and closing and paying off all but one of our accounts.
We were excellent customers for years and now we are subject to higher interest rates and dreadful customer service. They tried telling us it was our credit score which was a joke. It was just an excuse to get more money.
We are also switching to small local credit union. We are not interested in supporting corporate banks any longer.
What we need are banks that work for us and not against us.

Too late. I'll never use a CC again. The banks can take a hike. I don't care what kind of deal they're offering or what kind of points they're handing out. They can keep them! I'll save first. Even if it seems like it takes forever. I refuse to work for the banks!

This is a good start. I have been unemployed for 10 months, trying to find work, and work with these heidous banks. Long story short, this is a good bill for people who are trying to do the right thing, but have received NO exceptions, help, or understanding from banks. Thank you Nancy Maloney and Richard Todd. This bill is the beginning of "Consumerism", lets stop the negativity, no one person or bill is perfect, but a step in the right direction for the currently hurting, and underprivelaged in america.

Not everyone was irresponsible in this mess. I had a good middle management job that paid in the low 60's, AND a 401(k) AND a 6 months reserve. The one thing I DIDN'T know I had was the FIRST mortgage WASN'T like the second- a 30-year FIXED note. Then, being laid off and STILL NOT being able to get reliable steady, permanent work for over two years put me into foreclosure.

We don't live beyong our means; didn't buy a McMansion. But, the lenders NEVER wanted to modify us (which would have kept us OUT of default) and now, via the government reforms, are forced to drag this out to the point of the bank EVENTUALLY HAVING to mofify us. Moral here: I STILL blame the banks because common sense NEVER prevailed here. The countless hours of court time, paperwork shoving and legal manuvering could have been avoided had the bank considered that people who have NEVER in a 25-year work history been unemployed, never been "on the dole", and live modestly might want a leg up in a Recession (yeah- The Big Banks knew). I KNOW my story is NOT unique. So, I'm fighting to the end.

The US, including the big banks and the fiasco of the tangents it created in the markets- housing, stocks, insurance ARE to blame! Nothing was invested in the US so we are suffering now on the back end. My best example here- we INVESTED NOTHING for a mass transit infrastructure like MOST first world nations, and now we have a car industry in free fall, still no mass transit infrastructure, nor have trained the talent HERE in the US that could have averted this (no engineers, etc- they go abroad). Thanks Oil lobby, thanks Big Three lobby! My child is studying engineering, Mandarin, and becoming familiar with "Kiss Bow or Shake Hands". I hope she takes me (her Bachelor's Degreee mom) with her when the time comes!

Juanita from Florida This is great what the government is trying to do, but what does it do for the damage that has already been done by the banks? Those of us that have had the interest rate hiked up, canceled credit cards and lower limits, just because!! Now our credit scores have dropped because of the banks. So is there going to be any help to fix the damage the credit card companies have done to our credit scores?

Don't blame Congress, it's the banks own fault. They went too far in their absuive lending practices and now it's high time the government begins to reign them in. The murky methods and contract language that credit card companies have been using to extract fees and penalties should never have been legal in the first place. This is simply a good first step toward cutting down on the abuses of predatory lending. The next step should be legislation to correct the issue of banks based out of states without usury laws allowed to impose unlimited interest rates on any customer anywhere.

I was an employee of credit card company and here are my two cents:

All the consumers should call their credit card companies and tell them to remove fluff (over your credit limit allowance). This will avoid all $39 outrageous overlimit fees and your card will be rejected at point of sale if it will go over your credit limit.

Being responsible is one thing, but gouging customers in the name of profit is another. It is a great first step by senate to curb these deceptive practices by CC companies to consumers who are unaware of these demonic loopholes.

There are a lot of valid points. My philosophy is the same as many which is to pay off credit card debt monthly to avoid interest and to prevent the balance from rolling to the next month igniting debt to begin. But how realistic is that especially with huge purchases (car/home repairs, etc.) Yes, no one should live above their means but how realistic is that. As we saw with the housing bubble, for those who made extremely caution home purchases for no other reason than to provide shelter for their families where immediately taken beyond their means due the inflated home prices; regardless of the progress, many are now happy that the government is involved. Were they irresponsible? In my opinion, they were not. It would have been great if credit card companies establish better rules and been less discrete with consumers. Since they weren't it's a relief that someone thought enough to become involved. I think the ease of obtaining credit cards has changed the perception of having one. They use to be for "emergency use only" but now, with various promotions, anyone can obtain one with no credit history. I don't promote impulse buying, especially with credit cards, but I think that limits should be set so that consumers don't be exploited. The card industry is obviously a for-profit entity but has always lacked disclosure.

The reason rates are going up right now is because people are defaulting on their balances. If people just took responsibility for their actions everything would be much better. The entitlement people have is getting out of control. Since when is it someone else’s problem for you to pay back a loan you decided to take out. Face it smart well off people don't carry a credit card balance regardless of the rate. People who have money are not paying 10%+ on their credit card balance why their money sits in the bank and earns 2%. The people that are complaining don't have any money, so why are they spending money they don't have in the first place. If you can't pay your bill don't have a credit card, and therefore don't buy things you can't afford. Live the lifestyle that earn, not that you want. It's reality and if you don't like it then do something about, but this bill isn't the answer.

I am a responsible card holder that held a balance due to a medical emergency. I was making my payments plus 10% each month. Then out of the blue my interest rate went from 4.9% to 23.99%. When I called to ask what the problem was, the response from the card was you are being penalized for inactivity on your card. Since I was not using it, and just paying it off I was being punished. The following month they lowered my availble credit limit $1000.00 below what my current balance was and started charging me over limit fee's. I called the company again and was told by their operator that this was a "business decison" and there was nothing she could do about it, and maybe I should stop complaining about my interest rate! I called my states AG's office only to find out what they did was very sad but perfectly legal becuase there was not current credit card legislation. So even responsible, on-time paying consumers have been attacked. Oh and by the way this was not a fly by night bank, it was Chase!

Raised your rate? CANCEL!
Added an annual fee? CANCEL!
Short notice on change in terms? CANCEL!

The responsible ALWAYS PAY for the irresponsible – that's the socialist way.

BUY GOLD AND SILVER!

In 1980, I was only in the 1st grade, but my parents who worked their butts off to be able to live a modest life and have good credit score. You had to have a good credit score to purchase a home, a car or have a credit card. There was no "your job is your credit", you paid your bills to have credit or you paid for everything in cash. My parents instilled in me the importance of paying your bills on time, keeping your name good, and being an honorable person. The banker whom you got to finance your car and/or your home was your neighbor and cared about the fact they may meet you in the grocery store or at church on Sunday. There was one company Visa and one company Mastercard. Fast forward to 2009, the banker doesn't care if they meet you at church on Sunday, they are driving the Lexus or Mercedes, and you are still driving the car you purchased, and paid off, because you either don't have a job or have not seen an increase in your salary in two years. A person's good name doesn't mean squat, your credit score can be ruined by a hacker, and your life flushed down the drain.

America needs to live debt free, we need to get back to the fundamentals, your family, your friends, your community. This nation was built on the backs of hard working men and women. Teach your children that it is not right to live outside of their means, HECK people TEACH your children.. Stop depending on the teacher, day care worker and grandma to TEACH our youth. Care about your neighbor, check in on the little old lady that lives by herself because her children are too self absorbed to care. Be a better person, make America better.

This is great, but also crap! All the credit cards are upping their interest rates now, before the bill passes, so it won't benefit people who are hurting now. They should include in this bill to retroactive acocunts that were upped in the last 6 months to a year!

I have read all that has been said, and I applaud those of you that can pay their balances off each month. Personally I have not been able to do that because of my high balance with Capital One. I used my credit for medical reasons, and also received the letter stating that it was going up to 23%, never been late, never over drawn, always paid more than the minimun. I closed the account, what a mistake that was, I was told that since I closed the account I could not make any arrangements to help pay the debt. I was not asking for a reduction, or help or anything, just wanted to keep my rate as it is. I was told that the only way I could make arrangements to fit a budget, which was not what I was asking, I was wanting to leave my percent the same and not raise it, but they said the only way I could get that was if I defaulted on the card, and then they would reduce my amount due, hmmmmmm, I said personally that makes no sense, I have to default on the card to get my rate decreased.????? any ideas on why that is in place… I dont get it.

This is all well and good, but what happens between now and when this goes into effect? Will the CC companies gouge all they can in advance? What about those who they have screwed prior to this taking effect? Will the bill change my existing account from being at 30% on everything, not just new charges? Or will these rules only apply to new card applications? That is not clear to me.

Why is everyone using the comments to pat themselves on the back for not using credit cards? Then why do you care? I think this bill is necessary to keep these companies under control. It was getting out of control, and affecting even the lightest credit card users.

Well surely this will make everything better because government intervention always makes it better, right? RIGHT?

Banks and credit card companies are going to make their money one way or another. Otherwise, they wouldn't be a, hello?, BUSINESS.

So all this will do is encourage banks to refuse to extend credit to moderate-to-high risk borrows and also to hit the rest of us with more fees, like annual fees, immediate interest, etc. Not to mention that you can kiss those rebates and sky miles goodbye.

Wow, why's everybody so worked up? These bills just make it so the companies can't randomly change your billing cycles or interest rates, which they shouldn't be allowed to do anyway.

Those who disagree with the government regulating credit cards, I do not understand your problem. What rights are you losing by the government trying to protect the consumer? Additionally, credit cards are used as money. They are another form of currency. The government began regulating currency when the wild cat banks screwed everything up in the 1800s, eventually causing the Panic of 1857. We are supposed to learn from the past. We need the government's intervention here.

I do take exception with the Senate proposing that the legal age to own your own credit card, without a co-signer, be 21. Many people are completely independent financially years before that.

It means nothing to me because taxes are getting ready to explode. You will not make enough to pay a core payment on the card don't even think about the interest rate.

You also get to carry loaded attack rifles and handguns into National Parks because of this bill.

DEBT : Devoid of Every Benevolent Tactic. Pay it all off, save up an emergency fund, quit paying someone else to use their money instead of the money you have in front of you, and work with cash check and debit. Check out Financial Peace University! DaveRamsey.com

if they want to charge 100% , let them. Screw everyone who ever needs to borrow. wait a while then see what happens. Someone has to have the courage to say to govt hands off everything….wait a while and see what happens. Me for one would like to do away with a few red lights on the way to work…total govt waste

Zach…that is awesome…there is a differance between "want" and "need" … the only common thing is they are both four letter words. I am so tired of the wining take responsibility, challenge yourself and your families to see just what you can live fine without, consignment shops right now are flourishing…if you have not used it, or worn it in 6 months…get rid of it. If you do not have a consignment store nearby, drop off @ the Goodwill and take a tax credit. It can be fun as a family to see just how frugal you can be. Start a fund…all the $$ you save and plan a family trip, or a purchase. How much more is a family going to appreciate a "saved" for vacation than one they "charge" and are still paying off when the tan has faded….?

Susan Belfast from Maine….exactly!!!!
I was laid off from Wachovia bank even though our division was a 180% of plan and extremely profitable, but that's another story!!! I didn't have to rack up a bunch of credit card debt….guess why?? It's ingenious!!!! I had a savings account with 6 months reserves!!!!! Holy Cow, can you believe it?? People, I really do feel the economy crunch like everyone. I had to sell me home (at a 60k loss) and move into a smaller one. It hurt, but I did it because that was the obligatory thing to do. I didn't rely on the government to bail me out. I didn't let it go into foreclosure because that's the "easy" thing to do. I downsized and lived off my 6 months reserve. I don't say this to brag, just to illustrate a point. I drive a simple Honda Accord (paid for) My wife's car…paid for. We don't buy things unless we have the money, what a concept!!!!! stop being so damn impatient and wait six months to buy your wants. And a want doesn't qualify as something like a 300.00 pair of jeans, that's just stupidity!!!! I'm sorry, but stop blaming everything on the governement. Start being smart and not so materialistic. That's what got us into this mess. If everyone cared more about their neighbors, and less about what they drive, what they wear, or whatever, then things would be a lot better. It's time to look in the mirror and fix realign your priorities. Someones mentioned spending more time with the family below…what a novel idea!!! Or is driving a BMW more important and going to nice restauraunts?? That's what is wrong with America. We are all too materialistic and prideful. Sorry to be so harsh, but that is the truth. I feel for those families that lost their jobs because of cause and effect of others brazen choices.

It is called a Debit Card…use that It works with the Visa or Master Card logo….and allows someone to purchase items…only thing is DEBIT…D=means deduct from account…CREDIT= C= means charge. Perfect for using online….if you use one sometimes your bank has "cash back" or points and free shipping options that give you something back..a nice feature and then you can also use a ficticious number with some banks to maintain security online, but using a debit card means you do not pay interest or fees

Seriously?

Over the past eight years people have been complaining about the gov't trying to legislate morality – now they *are* legislating responsibility.

This simply infringes on the credit card business. They offer a service and should be able to charge what they want. Are you going to start regulating how much my lawn service can charge?

Get an AMEX. Pay it off every month and stop crying.

Until this whole recession mess- I considered myself to be a political conservative when it came to fiscal matters…

Considering that one's credit score determines the ability to buy a home, get a job, rent an apartment, and even get insurance… And furthermore- that the credit firms right now have an unfair amount of control for what one's credit score is by slashing limits and closing accounts on their terms… no one is looking out for the consumer except government.

I carry a balance on one card- it holds some stuff from my honeymoon and an automotive emergency repair. I've had the card for 10 years and had my APR doubled up to 17% because of a "business decision" according to the credit card rep in India. Nothing to do with my credit score or account- just a business decision.

Its sad that not one bit of what the card companies are doing NOW is going to be helped by this legislation….

I was actually being encouraged to CLOSE my account and then reapply (clearly I would either have a much lower limit or be denied outright). I fear now that when I pay the card off- my limit will get cut, adversely affecting my credit score. My wife and I want to buy a home within the next two years. Lowering my credit score will only make it harder to get a mortgage from a bank.

Unfortunately- without government oversight, these firms and banks will continue to extort money from the American public- no matter whether they are responsible with credit or not… Homes, cars, healthcare- all of these are far too expensive for the average family to buy outright. Therefore- either prices go down, or financing needs to be available. If neither- our economy will continue to suffer.

Luckily- if the bank turns us down or only offers an unreasonable mortgage rate- the "big bad government" will still be able to provide us with the opportunity to own a home through FHA… Yeah- government stinks alright…

Thank you Joe in Springfield, Virginia!!!! I feel the same way.

What happens to creditors that had accts closed without notice due to using information from other creditors? I hope there will be some time given to go back to adjust the damage to the "credit card victims". I am a responsible consumer, but there are times that we ALL need help.

I have a credit card tied to a Macys account. I don't carry balances and I have never been late but they notified me 2 weeks ago they are raising the interest rate to 23.99% and increasing a host of fees.

I called the store manager of my local Macys and told her I won't be back until they stop disrespecting me as a customer – and I mean it.

Except for online transactions, I can live without credit cards. I hope the banks and stores can live without the income they used to get from me as one of their most reliable customers.

The banks will increase fees for a while but if enough people do what I am doing, they will back down. Even the banks are smart enough to know that $1 is worth more that $0. They will be back at my mailbox within a year.

Well if American's would stop living beyond their means and stop purchasing things they do not need, maybe their credit card balances would not be out of control. Credit cards were designed to be a short term loan…A Bank backed loan shark!!! We took "Guido" off the street corner and shoved him into a flat piece of plastic!!!When you think about it…why would anyone in their right minds buy things, like Christmas presents in 2007 and still not have paid them off in 2009??? And why would you charge presents anyway…teach your families to live within their means, that is a greater gift than some plastic object making alot of "Made in China"-men rich…Seriously people, this recession is the best thing that could have happened, take a look around you, what is important? The big house you can't afford? Well now, lets blame your greed on the banks, and "preditory lenders" no one forced you to swipe that card, or sign that loan agreement…take some responsibility. We are the land of opportunity, big business thrives on opportunity it is the obligation of an individual to say no!!! Well so much for keeping up with the "Jones's"? Why not be the Jones's who live in a moderate, affordable home, warm, cozy happy…debt and stress free. I look around @ people that giggle behind my back because I drive a car that is paid for,(which cuts down on $$ paid in % and insurances premiums). I live in a lovely conservative, energy efficiant home, I buy clothes on sale, not name brands, I believe in quality vs. quantity. Well I looked out the window the other day ..oops there goes another repo-ed car down the street and these are the people that are upside down on their mortgages too. So what about the quality of life. Work extra hours to pay the bills so big businesses get thier fat bonues? How much quality time do people spend @ home relaxing with thier families enjoying that big house? How much time do you really spend in that $400+/month payment car, back and forth to work to pay for(but it looks good in the parking garage all day)? And how long do the "things" last that you charged on those credit cards? Probably the cheap China crap has worn out and broke before you finish paying for it???? Yet the CEO's of these credit card companies you are all complaining about are banking on the fact that American's are addicted to consumables and they will keep on spending untill they drop dead. How sad, to really screw these companies and banks…STOP SPENDING!!!!!! Without American's greed they can't function…when are people going to figure it out? When I look at my bank account balance, that is when I know whether or not I can afford that flashy new item…Curious thing.. I EARN %% on my money, not pay % for things I do not need. One more thing to all you consumers…I work for Bank of America, Credit Card services… and on our paychecks it says "Brought to you by the customer"…how funny is that. Keep spending America….

"but now the CC companies will have to bleed more from responsible customers to make up for the government forcing them to give high-risk loans to irresponsible customers."

Actually the cc companies are being forced to treat everyone the same again because they targeted people they should not have been targeting for cards and giving people far more credit than they should have. And thus creating the problem themselves.

with all the money problems credit cards cause for people, it seems to me the best solution is just not to have one. But without a credit card, a lot of businesses won't let you rent a car, make an airline or hotel reservation, get an apartment, sometimes even a job. Everyone wants a credit card for something. So what's the solution?

First, it is important that I disclose to everyone that my wife and I fall into the "financially responsible" category of credit card users.

Two great examples of how we let the credit card companies work for our family:

1.) I financed both my Bachelors and Masters Degrees using 0% Introductory Rate Credit Cards. I never paid any interest, and if the introductory rate was getting ready to expire I would either pay the balance or transfer to another 0% offer. These 0% intro rates are non-existent today, oh how I miss the good ole days.

2.) When 0% introductory interest rate offers started disappearing my wife and I switched strategies and began using credit cards that offer cash rewards for everyday purchases…usually between 3% and 5% depending on the type of purchase. Each year we receive roughly $600 dollars in cash from our primary Credit Card company just for making everyday purchases that could just as easily be made with cash, check, or debit cards.

My point here is that if you are financially responsible and disciplined with how you approach credit cards it is possible to let them work for you. Why pay interest or membership fees when your credit card company is willing to pay you in cash rebates on purchases for things like groceries, gas, dining out, and etc?

Are there any alternatives to this back stabbing thievery that the banks are putting to the consumers? BofA is raising all credit card rates and reducing credit limits for no viable reason. I've been with them for 20 years and will be looking for an alternative bank to put my business.

The real problem is the attitude among so many people that they can incur debts and then just walk away from them when times get tough. Even if you lose your job, get divorced, etc., you should still have a responsibility for things you buy and debts you incur. Bankruptcy doesn't have the stigma it once did and too many people don't seem to take accountability for their financial decisions.

What about Line reductions? many credit card companies have increased there efforts to reduce line sizes of even good card members, which affects credit scores, I wish the senate or house could have considered this as well

What none of these proposals address is the way the banks are sticking it to the consumer "NOW". Since the credit crunch last fall, and the Fed proposing new restrictions on credit card companies to go into effect in 2010, all the banks see the writing on the wall. They have started aggressively punishing their customers with unwarranted rate hikes, fees, and freezes or reductions to their credit limits. They will continue this until the legislation goes into effect to stop this practice. Unfortunately, without retro-active rules, most of us will be stuck with the increased rates. The credit crunch is still with us no matter what is said about TARP. The banks have curtailed lending and will continue to do so until they recover from the derivative mess. TARP will not help as it only punishes the executives pay and they make the decision on whether to accept those funds or not.

None of this affects me one bit. I always pay the statement balance in full by the due date, so I never pay interest. I trust that John from Des Moines would consider me a responsible user of credit cards. While I agree that many people have used credit cards irresponsibly, I disagree with his comment that this ONLY benefits irresponsible people.

Someone can responsibly take on a manageable debt at 12% that becomes unmanageable after a sudden jump to 33%. I see nothing unfair about the card companies having a floating rate formula tied to a well-established benchmark such as prime rate. Because that kind of floating formula is transparent, agreed to up front, and not arbitrary, I would let them apply such a formula to older balances to the extent that the benchmark rate floats up. And companies should be free to set new interest rates on future charges; the consumer has the choice to pay the higher rate or to stop using the card. But even with my libertarian leanings I think it is unconscionable for a company to arbitrarily hike a fixed interest rate on existing balances by 100-200% simply because they want to make more money and know that under present circumstances the consumer may not be able to take their business elsewhere.

It's about time for a change, I just tried to use a mastercard for a purchase and was declined, found out the company had canceled the account without any notice to me! How embarrassing to be standing in a checkout and be declined when it was not something you did! I called them to find out what was going on, the response was that my credit report had changed and on review they decided to close my account, the notice was in the mail! No email, no phone call, just the notice was in the mail and could be expected within 10 to 14 days. Oh by the way the card had a $2500 limit and no used balance on it when they canceled it. Payments had always been on time and more than the minimum when the card had a balance.
It's about time legislation was put in place to stop these practices!!!!

This is really going to screw over the large number of responsible people who pay their bills on time and in full each month. These customers have always been profitable for the CC companies (make $ off interchange fees and don't have to worry about defaults), but now the CC companies will have to bleed more from responsible customers to make up for the government forcing them to give high-risk loans to irresponsible customers.

At minimum, we'll see higher interest rates for that occasional time we might carry a balance. More likely, we'll start seeing annual fees, reduced or eliminated grace periods, and gutted rewards programs. One of my main rewards cards from Chase is already being gutted on June 30 in anticipation of these changes.

And if our cards start charging annual fees, we'll end up having to close all but one or a few accounts, which will then hurt our credit scores.

I'm already paying to bail out the mortgages of these irresponsible people who bought overpriced houses they couldn't afford. And I had to pay an extra $1500+ when I refinanced my mortgage (80% loan-to-value, no funny business) to subsidize the fee-restricted Obama mortgage refinance/modifications for borderline and irresponsible borrowers. Now I have to pay for their CC habit too?

Disgusting.

Where in the hell did this credit card crap come from in the first place???
I remember working for a large oil company when this first hit. The cards were handed out by the banks with NO APPLICATION from the holder!! I received two in the mail and threw them away. All I could think of was — this is the start of the end for one hell of a lot of people.
This is an open-ended contract folks and I feel you get exactly what you deserve!! Don't expect the rest of the country to bail out the idiots of the world!!!

People with bad credit should be forced to pay higher interest and fees-the bank is taking that risk.

No I do not work for a bank; I use my credit cards and pay them off every month as a responsible citizen. I pay no fees, and get many rewards. I want to keep it that way-and now I may have to pay annual fees because you nitwits were irresponsible and borrowed more then you could afford.

It's only fair-you guys rang up your own debt irresponsibly.

Easy solution to all of this….

DON'T USE CREDIT.

Thank you Marshall in Atlanta!

I've used CC Cash Advances and Convenience Checks as low-interest methods to finance two cars and two homes at "fixed until the balance is paid off!" rates from 1.99 to 2.99%. As long as I'm not late on my payments, not only have my rates stayed low (as promised), but my credit score skyrockets as I pay these balances off.

I realize that some folks have been affected through no fault of their own. That’s probably the major reason that the legislation passed. Far more missed payments or were otherwise irresponsible with their credit. Now I'll have to bail out those individuals by paying higher annual fees and other penalties imposed on responsible borrowers. What is fair about this?

Excellent point Jerry: "It does lack, however, a freeze on existing rates to prevent rate hikes before the law goes into effect."

Within the last 2 weeks, TD Bank increased my rate from my existing 7.24% up to around 14% (don't have the paperwork with me). I pay in full every month, so it doesn't matter, but they're obviously trying to get their last licks before the law goes into effect.

Responsible cardholders will suffer. Since late fees represented 70% of profit margins for credit card issuers, they will have no recourse but to impose interest from the date of purchase on cardholders who pay their balances in full each month. Also expect annual fees and the elimination of reward programs.

A notice of credit term changes was included in my April 2009 bill from GEMB–not unusual these days, except that this notice was dated Dec 2008 for changes effective 1/1/09!

I pay the entire balance each month so it doesn't affect me. But apparently the USURIOUS rates weren’t enough, as they are now assessing finance charges RETROACTIVELY!!

Since there is no limit to the blatant greed of the financial sector, the government HAS to set some boundaries.

I will be fine under this law, as will most of the people I know who have sterling credit and have never paid a dime in finance charges. The people who will suffer, along with the banks and their shareholders (check out your mutual funds, might find a few big bank stocks in there) are those with less than perfect credit who will see their borrowing options dwindle and their way of living change dramatically. While some of the practices were no doubt egregious and I am glad they are being banned, anything that makes it more difficult for the banks to make a profit will ultimately hurt the consumer. This is far from a clear win for the American consumer.

Unfortunately, this bill is nothing short of a scam, a fake, a public lie. Interest rates for new balances should be capped at 6%; and for old balances reset to ZERO.

Yes, I wrote "zero," and mean it: you and I have transferred $12 TRILLION dollars to the banksters in outright gifts, guarantees, and other funding.

There is no hope that our children will ever see one thin dime of these dollars, nor will they see any benefit from them.

Thus, I propose a FIVE YEAR moratorium on interest for auto loans; non-recourse notes (i.e. credit cards); other revolving debt; and last of all (and most importantly) for MORTGAGE INTEREST.

The only way to recapitalize banks is to pay down the debt they are owed; and until the usurious average interest (something like 17%) is reduced to ZERO can this be accomplished.

Mr. Obama, you heard it here first: repay America, revitalize our economy, and give US (and the U.S.) something for our money.

ZRN = Zero Rates Now!

Why, just yesterday I received a notice from Capital One informing me that my interest rate was going up to 23%. I have never made a late payment, I have been a longtime customer, so what is the reason for this? The notice cites "the challenging economic environment." Apparently, they're not concerned about MY challenging economic environment, only their own. This is complete bull****.

Guess what people … you think this is a good thing? Say hello to more annual fees, higher annual fees, less card available and no more travel points. This is the end result. This will teach people to READ THE FINE PRINT in their card holder agreement.

Last time i checked no one ever made anyone use a credit card and live above thier means. This is what is wrong with the county and the economy, people who wont take responsibility for themselves. I understand the fact that people have lost jobs and healthcare is expensive, but that is why you save and BUDGET. Something the fool congress, which party has that been the past several years (Democrat), and fool past president(Republican), yea im calling out both sides, are out of touch with the real world. No one wants to be responisble anymore.

To all of you who followed the rules:

You're about to pay the price for those who didn't.

What the Credit Card companies have been doiog is simply Capitalism at its worst. It shows greed, manipulation, deceipt and insensitivity that finally resulted in Government action, which was long overdue.

here's another attack on Capitalism. If they increase your rate then payoff the stupid card and close it. Use cash or debit card from now on. If you play with snakes, you will get bitten.

The federal credit unions are best way to get Credit cards. They offer reasonable rates and don't drain your pocets. They even give me a percentage bac for using. The only thing is is that my crdit union was growing to quicly for the regular banks since it was draining their customers away – which they didn't like. So they sued them on the grounds of their ban charter thus, restricting how the credit unions can get new customers. Presently, one can only open an account with the credit union if you fall under this criteria: 1) your employer has an account and agreement with them, 2) that you work in the local area the bank is in, 3). you live in the local area where the bank is in, 4) and you worship in the local area your bank is in. These policies don't apply to a regular big bank. I see these restrictions being applied to the credit unions as a means of restricting competition and are antitrust oriented. So why isn't government and the Treasury department removing these restrictions from the credit unions so that the regular banks have more competition?

You have got to be kidding me.

An 18 year old can die for his country in a way, and can be held responsible for life for a crime they commit, but they can't drink or get a credit card?
Stripping young people of rights is not the answer.

Eliminating universal default is just ridiculous as well. The credit card issuer loaned you money at a certain rate based on the risk that you won't pay it back. If new information comes in that you are a higher risk (because you're not paying your other bills) why shouldn't they be able to receive a higher risk premium?

Irresponsible borrowing is what has caused this whole mess, but we keep going after the lenders. Why are we so afraid to put the blame where it belongs?

Its about time! The whiners have been in charge too long.

Just wait till the credit companies stop giving credit to the less credit worthy. I can hear it already…. disenfranchisement

This article is not telling the whole story. Since credit card issuers will not be able to price cards as easily based upon risk, they will mitigate this in other ways. Ie. annual fees, reductions in rewards, higher across the board rates, etc. Think of it as credit card wellfare, the good customers are going to end up paying for the bad customers.

This will prevent issuers from quickly responding to changes in their customers risk profiles, and thus they will not be able to adjust yields fast enough to keep pace with climbing loss rates. Excess spreads will fall, and Banks will be forced to dump $$$ into their securitization trusts or let them fail. And investors in the Banks or the asset backed securities are the ones who take the brunt of it. And that will trickle down to you, Johnny Everyman, in the form of tighter credit and a longer drawn out recession.

You peons, like our Democratic congress, can't see the big picture.

Why should I have to pay an annual fee to cover the costs of people who have been irresponsible with their credit? As far as credit cards "taking advantave" of consumers, if a "consumer" does not have enough sense to read the fine print and know what they are getting into, they do not deserve to have a credit card! Same goes with mortgages. The government has to stop treating us like children. What happened to personal responsiblity?

Because of all the people who abused their cards, those of us who don't are going to get whacked.

Look for interest charges even if you pay your card in full every month.

There is no problem so bad that congress can't make it worse.

this bill seems to miss the point that the people who have been getting hosed by the credit card industry are uneducated or just plain stupid. 1/3 of credit card holders use credit cards advantageouly have an option not to use them at all because they pay off balances on time. This new bill will place fees directly on the middle who sometimes need to carry a balance. Starting to sound like our tax system. This will end up giving the irresponsible people a free ride, while forcing the rest to subsidize them. Net effect, if you can't be a responsible credit card holder, banks shouldn't be allowed to give you a card.

John from Des Moines is right. If you pay off your balance every month as your supposed to, you have nothing to worry about. Live within your means. People forget that America is capitalist. You're ENTITLED to get a new card.

Below a word was missing,"when maybe only ONE of the checks was the cause of the crisis?"

I agree that credit card companies have been operating with deceptive practices. However, the decision to use credit cards is a personal choice. As with other means of borrowing money, each individual has a choice: use it or not.

Allowing credit card companies to keep up their shameless exploitation of consumers is tantamount to legalizing a form of theft — once upon a time we had usury laws to prevent this kind of fleecing, but bought-and-paid-for politicians decided — not surprisingly — that consumers were getting too fair of a deal so they gradually eroded and/or eliminated all the laws that would protect us.

Beating consumers down does not grow the economy or create jobs. It widens the rift between businesses and individuals and increases mistrust in the financial system. If the banks want everyone to keep their money under the mattress, then keep it up! Otherwise let's enact fair credit card laws that make sense!

All these matters are the one that make the banks richer and richer and profitable. By only eliminating them and not placing a provision for minimum available credit for the public, the banks will just "shave off" a lot of credit and will stop offering credit cards, again making less available credit. And what about bank fees on checking accounts? Specially with the check cards which is such an easy transaction for the banks and the money is already there and they charge almost the same fee to merchants as credit cards? And the over the limit fees allowing the banks the pay first the big checks that same night to overdrawn the acount, and charge a fee and all the checks, when maybe only of the checks was the cause of the crisis?

What about the practice of charging interest on the outstanding amount AFTER the amount due has been paid in full. Then charging interest on this finance charge the next month! This practice makes it very hard to be a responsible credit card user! You can't even pay the card off without penalties.

I am not sure but does this bill address the processing fee that many of the credit card companies charge for purchases made in foreign currency. I was docked 3% for a purchase I made through a Canadian company even though I was physically in the US at that time. This is apart from the not so good exchange rates.

This is all well and good but "credit cards" are still usury and as we all should know usury was forbidden in ancient times. Had this been the case in modern times, we would not be in the mess we are in.

Credit cards simply make one spend more than one makes and that is the current recipe for disaster.

I can't believe some of these responses like marshall from Atlanta, I have never been late on a payment either and the Pirates at Capitol One raised my rate from 8% to 17% out of nowhere. They did it across the board to everyone of thier cardholders.This isn't about living within your boundries, this is about reeling in these thieving bastards.

I use American Express and my rates have actually decreased in the past few months. Granted, I do pay my bill in full every month…which everyone should be doing with a credit card. We have to remember that it isn't a house loan or a business loan. I can't believe I read that some guy put 60k on his credit card for his business. Now he wonders why his accounts are getting closed. Anyways, the only good thing in this legislation is that CC companies can no longer change rates on previous balances. Other than that, I think it hurts people who pay their bills on time and helps those who don't.

In the past two months Chase raised my rate from 5.99% to 12.99%.I carried a small balance and was never late.Today I received notice that my Capital One card is raising my rate from 7.90 to 17.90%.I will pay my balances down to zero ASAP and not use the cards.Then the credit card companies will threaten to close my accounts because of inactivity.That in turn will lower my FICO score because they are my two oldest cards.I see no real protection from congress at all.I only used my cards because of convenience in the past.Now if I choose to use them only for emergencies they may not be available.I would like to see fair interest rates and rewards for responsible use of credit.Does any body think Congress will put that in a bill?

It's incredible to me how people are excited about the government stepping in and telling private institutions how to manage their business. If your dumb enough to pay one dime in interest to credit card companies you probably should not have credit cards in the first place. I spend about $2,000 per month on credit cards and have never paid one dime in interest after over 10 years of having credit cards. One time I accidentally short-paid an invoice by about $0.50 and I called the credit card company to complain about the charges that ensued and they completely waived the charges on the $0.50 short-pay. So, the one time the credit card companies did try to charge me interest I would say they were pretty fair. If all people managed their finances as they should we would have better access to financial products when we really need them, like health crises, not to buy a big screen TV. Instead people want to put big screen TV's on their credit cards and never have to pay for them and the responsible people will be stuck holding the bag again. I'm so happy!!!! This is great legislation!!! Now, just tell me what car I should drive. Oh wait, Obama just did that.

This is unsecured debt. Stop being such consumer sheeple for the latest consumer toy or flat screen this, blue ray that.

Those who are in debt DID IT TO themselves in 90% of cases. I don't buy the arguement that most bankruptcys are due to job loss, medical bills because often that is not the case.

Credit card debt is unsecured. You want an unsecured card with a $20,000 line of credit given to you based on what you write on a 10 line online application you will have to abide by the terms & conditions. this is the riskiest debt there is.

I am 33 from NYC and really sick to death of this nanny state & such lack of personal responsibility especially this coverted gen x & y that just whines how rents are so high when they are charging $300 jeans.

2 cents:

** Now that it has killed the credit card business, when is government launching it credit cards (with tax payer money).

** Even if the credit card companies are able to survive, everyone be ready for 18% APR. And yeah… there is no incentive of paying bills at time

How long have people “known” that credit cards are “evil” and their fees / rates “criminal”? Quite awhile…but you still signed up for one, right? Are credit card companies agressive in their tactics? Are their measures punitive if you give them room to act? Yes, very.

That said, this is pretty plainly stated in the fine print! Everything from default rates to the priority of how payments are applied. Everything. A lot of you are saying, “no one reads that though”. Ok fine, but don’t complain when you are on the hook for more than you can handle due on a loan that you willingly signed up for (for those that are on the hook for medical bills etc., I’m truly sorry) but neglected to make the effort to understand. Funny, this sounds disturbingly similar the a lot of the mortgages that were taken out.

Bottom line, you are the only one in your corner looking out for your best interests. Everyone else, corporations included, are looking out for theirs. So spend an extra 10 minutes reading a document in order to understand how and why it could come back and hurt you. If you did that, you will understand your rights, your recourse and how to avoid this from the outset.

Unfortunately, with the way these docs are structured, you can bury yourself in a hurry. But at the end of the day, most people got themselves in that position by yielding to instant gratification and buying stuff they can’t afford instead of excercising fiscal responsibility and saving. Not all, but most.

Let’s be honest…most Americans’ defnition of NEED is laughable. We’re just lazy, materially driven and creatures of convenience. I largely put myself through private college (thanks to my folks in part, student loans and grants)…but I have high 5 figures of debt that I have rolled over every year on credit cards at 0%. I financed my education for an annual transfer fee of $75.

Credit cards are a valuable tool…you just need to use that muscle in your head, exercise some personal restraint and start expecting other people to look out for you.

Should a loan on a credit card be guaranteed for life? I have a card with Capital One. They notified me that they were raising my rate from 8.9% to 17.9%. However, I had 45 days to call and "opt-out". I did. It was easy. I can no longer use my card for new purchases, but can pay down the balance at my 8.9% rate with my same minimum payment. This seems totally fair to me. I'll take my business elsewhere, but am concerned this legislation will raise rates for everyone with the good subsidizing the bad.

To those whining that there is too much government meddling in affairs, hey get a clue, the banks have been sticking it to average folk for years, and something had to be done. To the whiners, stop using the irresponsible folk as an example each time, and look at the bigger picture, the banks have been able to do what they want whenever they want right now, but once the new rules go into effect, it should provide some kind of relief to all including the whiners. I for one am happy the government is cracking down a bit on this institution, they have had it too good for too long. Time to bring back some balance into the fold. To the Whiners, those same irresponsible so called folks, some have had lost their jobs, used up their savings and had to go into debt because they could no longer afford health insurance and their credit cards were the only safe haven between life and death. Its easier to criticize when its not happening to you whiners out there, but its another thing when it happens to you and your on that side of the stick, give it a rest and go outside and get some air.

It's long overdue. It does lack, however, a freeze on existing rates to prevent rate hikes before the law goes into effect, better yet a provision to retro rates back to six months ago.

Well you can sure tell who the Republican respondents are. "Don't use credit if you can't afford it"…what do you think credit is for? I always pay my bills on time, but would have to wait months or years to buy essential things if I didn't use credit. I'm so glad to see the GOP falling apart. Our country will be better off when it does.

BOA just popped us from 8% to 23% with no warning. Advanta popped from me from 8% to 15% after 12 years.
We've never had a late payment and always kept low balances until now, when we opened two new businesses. cash flow is good, and we were paying them back down but how the hell am I supposed to make headway on 60k at 23%?
oh, and since I always used advanta, I neglected other business cards that got cancelled last year. no biggie right? yep, advanta is closing all accounts the end of this month. THANKS A LOT.

The only people that benefit from this are people who use their credit irresponsibly. The only people who suffer are those that use their credit responsibly. Now watch the comments roll in from the "responsible" people about how I am wrong.

It is amazing that there are people on this site complaining that the government stood up for consumers. ARE YOU PEOPLE SERIOUS? So it is okay for credit card companies to exploit consumers in the name of capitalism? I guess you can never please everyone…funny that these same people will enjoy the benefits of fair credit card practices and still complain.

Finally. The government got this one right. I generally don't like federal regulations as they have counter productive results. However, the banking industry was its own embarrassment. Generally the industry should regulate itself to prevent its own demise. Now they are trying to suck money out of the poor and beg for money from rich. I think the poor should stop paying and the rich stop their money away. Let the banks who put themselves in this situation fail.

Here's an idea. Make it retro active 5 years and pay back all fees that are redefined as predatory under the new bill. 18% is a loan shark rate, and we allowed it for far too long. Further, these tactics the banks are taking to generate income are not just targeting bad credit types. They shift payment dates to trip you up and EVERYONE is getting caught to some degree. So enough of the partisan BS, save that for Rush and the very entertaining Fox "news" network. This nation is charting a new course for the people, not for the elite.

It took a Democratic Congress and President to make these reasonable changes. When will the rest of the Country understand that if you are a Republican politician, your constituency is Big Business, the consumer (which we all are) be damned.

Well it is a start. At least we will have improvements over the old way of doing business. This is one of the very few initiatives that Congress has enacted which has directly impacted me in a positive manner. Thanks for putting average Joe and Jane ahead of the fat cat bankers for once.

This is wimpy legislation as Congress caved into the banks. The real issue with credit cards has always been the excessive interest rates which are as high as 41%. That's what a loan shark would charge. The banks are robbing us blind with taxpayer bailouts and high interest rates. This legislation also does not prevent multiple fees for the same overdraft which is common for credit cards (typically an overdraft is charged 2 overdraft fees). I see this legislation as next useless because it does not address the real issue of high interest rates charged on credit cards. I no longer have any dealings with banks or credit card companies because I think they are all a bunch of crooks. Instead I keep my money in a credit union where I am not subject to such abuses. Credit Unions are a welcome relief from the practices imployed by banks. I get the impression that the banks have bought Congress given all of the bailout money and this modest legislation. I have no doubt that the banks have learned nothing from this crisis which they created and that will continue to leverage to the max until the country is destroyed. Failure should not be rewarded and that is exactly what Congress has done by bailing out the too big to fail banks.

It's about time that Congress started listening to their constituents and not their lobbyists!! These changes are good…..but there are still plenty of problems with Credit Cards, Banks, Mortgage Lenders, etc…… hopefully Congress will continue to unravel the stranglehold that corporate America has placed on Joe Consumer!

Looks fantastic on the surface, again, long overdue. Less predatory lending to young adults, more notice of rate hikes, no hiking interest on existing balances. All seem like great moves, although I agree with Mike that it doesn't help people already in a fix.

I'm trying to understand Larry's comment about this bill constituting re-distribution of wealth. I don't see anything like that in the article. Am I missing something?

Just as the government regulates mortgages, the credit card industry should just as well be regulated. With regards to Larry in TX, my sister has perfect credit and received a notice from Chase that her APR was going from 12% to 32.99%. Their only reason was the bad economy. Don't sit there and blame things on consumers who's credit could be damaged due to one of many possibilities which you know nothing about. Let our government do what they're supposed to do. Look at it this way, Bush would've passed legislation allowing the banks to raise rates to 50% or higher!

Can we stop acting like consumers deserved to be treated the way they were by this criminal industry? I'm a firm believer in self-reliance, but when a company can invent ways to change the terms of a contract on a whim after gaining your trust….well…it should just be illegal. I remember a time when the credit card companies behaved responsibly and didn't try to hussle their customers (now victims).

Great idea, but what about reducing the fee's that the business' are charged for accepting them. Those of us who don't use them or want them have to pay more for what we buy because everyone else wants to go in debt. That doesn't seem very fair. I hope the gun bill makes it through as well because the only constitutional national security act that we the people have (The other one that the military-industrial complex loves so much, as well as some ignorant judges, is not and never will be) is the second amendment and it needs to be strenghened at every oppurtunity!

It's good to see Congress finally doing something for the people. I alsoways hear people talking about "You borrowed the money, it's your obligation to pay it back", but I never hear anyone say "The lenders have put you into a trap that you'll never be able to escape". Hopefully this will be a start to people using credit more wisely and not living off of it.

I agree with Mike from Elmira, NY it is
about time that Americans march on Washinton and take this country back from these Greedy Politicians. I would
imagine George Washington is rolling over in his grave to see what a discrase America has become, because we the people let it happen.

The result will be that consumers with weak credit histories will not have to worry about credit card debt — they will no longer have access to credit cards. I seriously doubt that was the intended result, and expect that Congress will have to revisit this issue shortly.

One of the things that bothers me the most is the age of 21 thing. Again the same old song…I can defend my country, but I can't drink a beer…and now I can't get a credit card without my parents. Do I need them to enlist in the service??? Oh ya….I really need to be able to carry a concealed weapon in National Parks. Come on STOP TACKING on extra stuff just to get a bill passsed!! That is BULL!!!!

Do your Headlines have to reflect your bias? This is not a big win for consumers. I have never been late with a credit card bill, and this legislation almost assures me of a higher interest rate and lower available credit as banks tighten up to avoid the losses associated with "protecting consumer rights". If you can't pay the bill, don't use the card and let the market take care of itself. The best protection consumers have is themselves!!! Live your Wage!

Finally some good legislation against the credit card companies specially the one about payment allocation.

Larry, not much apparently. If your "credit cards are just doing fair business" belief is valid, why are consumers who aren't late getting rate hikes? Or suddenly shorter grace periods for those who don't carry a balance?

I think the bill is a good idea – but it's likely to tick off a lot of people. If the credit card companies can't make all that money off of people who can't responsibly use a credit card, they'll need to make up the difference charging more from the people that do.

this is excellent legislation … it protects Americans who are are susceptible to billions in 'easy money' advertising and bait and switch tactics by the banks … which is the majority of this country … like you holier than thou morons are perfect … Larry go get your GED

This is absolutely fantastic. This hurts the banks in the short term. Really, it is hard to believe that some of these practices are even still in existence (banks ability to credit payment amounts against the lowest rate% charges on your card instead of the highest ones first for example).

This is the government doing something concrete to make consumers lives better. Thank you!

Look, here we go again, just like the re-distribution of wealth, If a have verygood credit and had to pay a 7% interest rate on a loan and you had very bad credit (continue to but but never pay your bills) and had to pay a 23% interest rate on your loan, we both can now meet in the middle and pay a 15% rate on our loan. Come on, who are you trying to kid.

Just a highschool drop out, what do I know.

This is great legislation, long overdue.

nothing more than lipstick on a pig. what about the millions of people already affected by these dreaded 'change in terms letters' that didn't opt out or swiped their card after the effective date which effectively raised their APR to over 25%..

The real issue is the APR's which are almost criminal especially when these banks received taxpayer dollars. Chargeoffs have already hit 10% for AMEX and approaching that level for other issuers. Many are just saying no and walking away from unsecured debt 'secured' by a signature. Much of this debt will never be repaid

Stop being such sheeple and believing that your 'FICO' score rules your life. Don't spend money you dont have and you won't have to rely on credit

I am so damn sick of this American government! We need another revolution in this country! Our representatives are push overs! What happened to "of the people for the people?" Not a one of our government representatives care anything about its people! All they care about is saving face with their parties of interest and themselves! How is it we bail out these banks and our feds pass this lame credit card crap! What a futile attempt to make a mess look as though they did something to correct it! These people live the high life, we pay for their health insurance, their mistakes and give them the good life while the rest of us average people live in beyond difficult times that the idiots running our government had hands in causing in the first place. We are angry damn it! Stop pussy footing around and represent us with a backbone!