Korean Job Discussion Forums

[Ya-ta Boy]

Big changes in store for US credit cardholders

Congress wrapped up the legislation Wednesday and sent it to President Barack Obama, who plans to sign it on Friday. The bill will revolutionize the market by restricting when and how a card company can raise an individual's interest rate, who can receive a card and how much time people are given to pay their bill.

In general, the new rules � which go into effect in nine months � will protect debt-ridden consumers from many of the surprise charges common in the industry, such as over-the-limit fees and costs for paying a bill by phone...

But there will be losers too.

Banks, which oppose the legislation, will need to make up the cost somewhere, and cardholders who pay off their balance in full each month could see new annual fees and lucrative rewards programs canceled. Credit could become harder to come by too.

http://news.yahoo.com/s/ap/20090520/ap_on_go_co/us_congress_credit_cards

Seems like a decent enough bill, passed with solid bipartisan support. To those calling for more--to quote an old political saying: The good is not the enemy of the perfect.

[Kuros]

[Rusty Shackleford]

[Rusty Shackleford]

http://www.cato-at-liberty.org/2009/10/02/credit-card-act-is-affecting-the-job-market/

Thought I would resurrect this thread as we are starting to see some of the (unintended?) consequences of this bill start to filter through. It is yet another example of how govt intervention, no matter how well intentioned, always creates negative unintended consequences.

[Kuros]

[Pluto]