Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Credit reform act may cost more in the long run

Credit reform act may cost more in the long run

By
Add to Favorites:
Credit reform act may cost more in the long run

With the new reform act signed by President Obama in 2009, financial analysts say that its implications could mean more costs for cardholders from this year on. While the reform act works in favor of the credit account owners by implementing checks and balances mechanisms for credit card issuers, analysts say there is more to this and that consumers still need to be watchful.

Analysts point out that high annual fees were already introduced by the credit card issuers as they comply with the reform act which mandates them to be more transparent in their dealings. The high rates, the analysts say, is a way for the companies to make up for projected profit they can lose with the mandates of the reform act.

Analyst Tim Morgan adds that the reward programs may simply be dissolved in the market, since the benefits on the rewards credit cards cannot be offset by high annual fees. The companies cannot run the risk of doing this since it can be considered another violation in the reform act.

He also stated that now it will be more difficult for people with low income or bad credit history to get credit.

Morgan believes that though consumers may find relief in one way or another with the Credit Reform Act, there should always be considerations for their costs – especially when one plans to maintain credit cards in the long run.

Like any kind of debate, the Credit Car Reform Act has two different conclusions – one that defends it and the other that exposes its loopholes, Morgan remarks.

In conclusion, he offers the reality that there really is nothing in the reform act to protect the cardholders in cases of high interest rates with the variable credit cards.

With the rise of the prime rate, Morgan shares that the interest rates are also expected to increase. This is something that credit card account owners have long been wary of and of course, something they would try to avoid as much as possible.

Morgan finally concludes that with credit card companies continuously exercising their right to limit credit entitlements and impose new or additional fees on accounts under their discretion, the worries by consumers on other types of credit cards not being protected by the Credit Reform Act are still very much grounded.

Add to Favorites:

Related News:

Amex Acquisition Increases Security

By Dar Dowling, Posted: December 9, 2016

American Express has bought InAuth, Inc., a company specializing in providing customers with mobile device authentication and intelligence solutions. Continue reading
Citi Card Tracker Unveiled

By Dar Dowling, Posted: December 8, 2016

There is a new feature in town now that Citi credit cardholders in the U.S. can track where their replacement card is every step of the way as it travels to their mailbox. This new feature is available in the Citi Mobile App, whether the ... Continue reading
New Digital Wallet From SDCCU

By Dar Dowling, Posted: December 7, 2016

The San Diego County Credit Union (SDCCU) is rolling out their brand new digital wallet app for iPhone users. With the app people can use their phone to safely do their banking, whether that means using their phones to expedite cash ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
Earn 1% cash back on gas and grocery purchases. Terms apply.
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit