Writer says new card rules benefit cardholders less - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Writer says new card rules benefit cardholders less

Writer says new card rules benefit cardholders less

Writer says new card rules benefit cardholders less
The content is accurate at the time of publication and is subject to change.

CBS news writer Anthony Mason, writes that after the implementation of the new credit card rules, there are now many concerns about how these rules benefit cardholders in the long run.


Mason says the hikes in interest rates are now taking effect across credit card companies in the country. He says the increase in these interest rates is so high, that they have hit an unprecedented level since 2002.


Mason shares data on 381 million credit card accounts across the United States. He says that new regulations may have helped cap the fees or charges for late payments at 25 dollars, but he still points out at the reality of high interest rates as more pressing for the 381 million credit card accounts. He then mentions the new regulations included the abolition of fees on inactive cards.


Though capping late payment charges and removal of fees on inactive cards may be beneficial, Mason argues that these regulations also step on the roles of banks to properly assess penalty fees. So, as a consequence, banks are now focusing on interest rates, since this is where they still pretty much maintain control except for a few rules.


With the new regulations, Mason also says that credit card companies have already reduced the amount of credit their cardholders are entitled to. From the same period last year, the available credit for a newly opened account was at $4,400 or more. This year however, an 11% decrease was seen with the amount at $3,900.


Although Mason acknowledges that these changes should bring forth positive directions, and lead Americans to be more careful about their spending habits. An economy recovering from the economic recession still needs more.


Consumers advocate groups and organizations have already expressed concerns in the way the new regulations penalize good cardholders. These groups and organizations believe that future credit card account applicants should be entitled to more, such as the credit limit amount, especially when they can prove good and responsible payment capacity.


Mason also adds that consumer advocates mostly consider the cardholders who have been successful in and who are continuously building good credit histories. The consumer advocates worry that those with good credit records can now be threatened by late payment charges because of newly introduced high interest rates, Mason concludes.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Get 100,000 Bonus Points with the Radisson Rewards Premier Visa Signature

Posted: December 14, 2018

If you have been thinking about getting the Radisson Rewards Premier Visa Signature credit card, now might be the time to take another look because it now comes with 100,000 bonus points. This is a limited time offer, which is in play from ... Continue reading
Minor League Baseball and Allegiant Airlines Partner Up

Posted: December 13, 2018

Allegiant Airline and Minor League Baseball have inked a deal paving the way for a credit card partnership, one giving fans a credit card that reflects their fandom in terms of rewards whether they are traveling or catching a game. When ... Continue reading
Capital One Partners Up With Airlines

Posted: December 12, 2018

Capital One has partnered up with 14 airlines so that Venture and Spark cardholders can now use miles to pay for their flights. What is the transfer ratio? All of the carriers that have partnered up with Capital One, except for Emirates ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!