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Credit Card Traps Here For Good

By Bryant Park

July 23, 2010

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Newer rules to clamp down on unfavorable credit practices are in the pipeline. Despite the final phase of the CARD Act is due to be implemented from the month of August, credit card companies are working overtime to find newer ways to ensure they don't let the new regulations hamper their revenue. Banks and other financial institutions are coming with various unheard fees to leverage their losses.

In order to protect the consumers from the sky high interest fees and a myriad of irrelevant fees, the CARD Act came into effect early this year. In addition to curtailing the fees and the interest rates, this Act also improved the transparency in the transactions.

One of the many rules that have already come into effect in the first phase of the implementation of this Act is the need for banks to give their credit card customers a time duration of 21 days to make their payments and also a notice period of 45 days in case of any change in the existing rate of interest.

Added to this, credit card lenders cannot levy over the limit fees and also they are refrained from increasing the interest rates on the credit cards until the payments are late by two months. With newer rules coming into play in August, credit card lenders cannot charge their customers the inactivity fee which is the fee they had to pay for not using their card to make purchases. Also, the banks cannot levy multiple late fees on the same account. They can only charge one late payment penalty at a time on a card.

While this indeed spells good news to customers, banks are making sure they don't lose much in this process. They are finding innovative ways to work around these new regulations.

Credit.com's personal finance advisor, Gerri Detweiler, said that the implementation of the CARD Act has curbed many of the abusive practices by the credit card lenders. He however also added that a lot of people felt that this Act did not benefit them in any way.

You will be well protected by this act if you use your credit wisely. Make your payments on time, at least the minimum due, so the banks don't have any reason to charge you in excess. Remember, you have an option of rejecting the increase in the interest rates since the banks will give you 45 days to make your decision to retaining the card or closing it.

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All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.

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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

$20 off Plastc: http://share.plastc.com/x/Lvq604
John Stifler

I think almost all people that familiar with internet, will hardly fall to these scams, but for now, I think people that use computer but don't familiar with internet things, and they has a phone line at their home, they should be warned more than internet users. I think senior people usually got scammed by these kind of "tech support" scams. Found so many reports about them since years ago at complain board sites like http://callercenter.com. We as younger, and know more about this stuff, should help and share information to they who needed it, especially older people.

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