Bank of America certainly caused surprise when it declared that it had doubled a “goodwill impairment” cost for its credit-card unit to $20.3 billion to show a heightened worsening situations. Many of these negative situations are attributed to the new laws and regulations concerning credit cards.
We all want someone who will fight in our best interest. When it comes to the majority of us, middle class Americans, Elizabeth Warren said that she is fighting for our view to be heard on the importance of fair credit. She has been sticking up for consumers who are at the mercy of whatever interest rate and fees are decided by banks.
Warren was named special adviser by President Obama last year, he asked her to superintend the new Bureau of Consumer Financial Protection. The Bureau was created last year as a result of Dodd–Frank Wall Street Reform and Consumer Protection Act, a new law started a year ago, was produced in an effort for financial regulatory reform. Many in the industry find the CARD Act to be undesirable because the Federal Reserve is planning to cap debit processing fees since the new law mandated it last year.
Senior Analyst Mitchell Delaine at www.Credit-Land.com, estimates that the credit card industry lost about $10 billion in annual revenue as a result of the CARD Act, mostly from its restrictions on how lenders can raise or change interest rates. “It has definitely reflected in new credit card approval volumes, as we see a decline down from 29 percent to 15 percent”
Warren has become unfavorable by banks because she has advocated for more to be done about interest rates and giving consumers more information so that they compare products and make the best decision about the product. She is continuing to fight for financial reform of the country alongside President Obama. In an interview for CNN, she said that she had been given all the tools she needs by the president to do the job that he asked her to do.
Picture a perfect place where every bill is paid on time. Having a hard time picturing it? Me too but mostly because my perfect place would have no bills. Even the best of us might be late once in awhile with a single credit card payment or some unassociated bill. Life is full of surprises that could cause a person to forget at least once in a lifetime. Many credit card companies have been able raise interest raise for late payment that has nothing to do with the credit card company. The new law and Warren, who is working with the new bureau, made it much more difficult for credit card issuers to raise interest rates for such reasons. After all, there should be some grace for unforeseeable events that could cause a late payment anywhere.
It appears that Warren has mostly shined in this new position. A new problem concerning credit has caused consumers not necessarily be giving Warren a high-five yet. While interest rates are getting better, it seems that initial credit rates and fees could be making it harder to obtain a credit card in the first place nowadays. Perhaps, there is a secret which entails not giving so many Americans credit in the first place.