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Credit Card Applications » News » Other » Lawmaker Wants Card Rules Earlier

Lawmaker Wants Card Rules Earlier

October 02, 2009
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The chairman of the House Financial Services is calling for the earlier implementation of the CARD Act of 2009 and the tougher regulations that come with it. Rep. Barney Frank (D) of Massachusetts says that the federal government should hasten the implementation of new rules designed to curb the unfair practices of the credit industry.

Frank is expected to introduce a new bill that would set the implementation of the milestone legislation earlier than previous plans. Experts say that the Democrat lawmaker is eyeing January 1 of next year instead of February. The congressional representative said that the need for earlier implementation came about after months of continuous complaints from constituents. He added that American cardholders have raised complaints regarding abusive rates and unfair changes to card terms in recent months.

Anticipating the tougher regulations, card companies have resorted to higher fees, penalties, and charges to make up for expected losses. Card issuers have also been raising interest rates to get as much revenues as possible from cardholders before the new rules make it virtually impossible for them to revert to traditional industry practices.

Analysts say that card firms have even went so far as to close down card accounts they deem risky, slashed credit limits on millions of cards, and raised monthly minimum payments. The combination of sudden changes in card terms has made it almost impossible for millions of cardholders to cope with. In fact, experts and financial research firms say that defaults and charge-offs have increased significantly after card companies introduced new changes.

Aides of Rep. Frank say that House Financial Services Chairman is close to filing a bill that would hasten the implementation of the new rules. Steven Adamske, Rep. Frank's senior aide, revealed that a bill could be filed as early as Dec. 1 of this year. Even the major sponsor of the original bill, Rep. Carolyn Maloney (D) of New York, expressed support for an earlier implementation of the tougher regulations. Rep. Maloney also spoke with Frank earlier this week to discuss plans for an earlier implementation.

Representatives of various business organizations weighed in on the proposed plan, saying that rushing the new rules can result in more problems for cardholders and small businesses. Experts say that the announcement of earlier implementation can force card companies to speed up their already abusive practices. Analysts fear that card issuers may resort to denying credit cards to more Americans, who rely on them for their daily expenses.

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  • Larry
    With the Virgin / Barclaycard signature offer, there seems to be some consumer deception or maybe even outright fraud goin on.   I decided to jump on this offer..  read all the info on it..  was approved for their platinum card, paid the fee, then was only awarded 10,000 points instead of the advertised 20,000.   When i inquired about the less than advertised bonus points, Barclaycard claims only Signiture Visa cardmembers get the 20,000..  as a platinum cardholder, you don't qualify for that level of bonus, so you get 10k instead.   Well, in their current ongoing promotions, it states plain as day that....    Applicants approved for the Visa Signature or Platinum Card with $49 annual fee will receive 20,000 Bonus Points awarded to your Virgin America Rewards Account at the close of the first billing statement in which you make your first purchase or balance transfer (that is not returned or rescinded) and have paid the Annual Fee on the account (and such fee is not rescinded). They don't mention anything about a separate program for platinum cardholders..  However, trying to get someone to resolve this issue with either Virgin or Barclaycard seems to be rather impossible.. Seems to me they're simply drawing people in with the fraudulent offer, then simply saying, oh, we're sorry you don't qualify..  but thanks for signing up for our garbage credit card with insane fees..   
  • CreditLandCom
    Thank you for sharing your experience with us. We have reviewed this offer and you are correct, nowhere it is mentioned that 20,000 Bonus can become a 10,000 Bonus all of a sudden... We will mention this in our review of this card so others can make an informed decision. Another way to get Virgin miles is to get an American Express charge card: The Business Gold Rewards Card® now offers 50,000 Miles, though you do have to spend $5,000 in the first three months of card membership to get it. It also has $0 introductory annual fee for the first year, then $175. http://www.credit-land.com/details/the-business-gold-rewards-card-from-american-express-open.php Premier Rewards Gold Card now offers 25,000 Miles, though you do have to spend $2,000 during your first three months of Card membership. It also has annual fee of $0 for the first year, then $175. http://www.credit-land.com/details/american-express-premier-rewards-gold-card.php While we do not know If any of these offers make sense to you, we are at least sure that you will get advertised bonus in full if you decide to get them... Conversion rates for Virgin America are: 100 Elevate Points = 200 Membership Rewards® Points All the best.
  • Deborah Ellsworth
     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
  • Deborah Ellsworth
    I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself ThankYou. D Ellsworth
  • Miss Edna
    there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
  • Robin Parks
    I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
  • CreditLandCom
    The Chase bank cards are not currently available at Credit-Land.com, but you can consider applying for the Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back. The cards has similar terms and cash back program.
  • Becky
    This is Becky Now what do I do just waqit for acard to come to me?
  • CreditLandCom
    Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
  • SavingStar
    Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
  • CreditLandCom
    Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
  • Eric
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