CFPA Gets the Green Light
October 27th, 2009
Despite a great deal of opposition from big-business lobbyists and right-wing politicians, the Consumer Financial Protection Agency (CFPA) has moved one step closer to seeing the light of day.
The House Financial Services Committee, led by Chairman Barney Frank (D-Mass.), approved the CFPA’s creation last Thursday and will now send the bill on to the full House. And while the legislation is definitely a more watered-down version than others introduced earlier this year, its supporters, including President Obama, seem quite pleased with the progress so far. More »
Posted By: Creditnet.com | Comments (0)Pay Up or Forget About Paying with Plastic
October 19th, 2009
Have you ever thought about how much you would pay to keep your credit card?
Years of no annual fees, favorable grace periods, and reasonable interest rates probably kept you from pondering such a question. But as major credit issuers search for ways to replace the revenue they stand to lose as a result of the CARD Act of 2009, you may soon be forced to determine just how much you’re willing to pay for the convenience of paying with plastic.
After announcing a paltry third-quarter profit of $101 million last week, the CEO of Citigroup, Vikram Pandit, said “Looking forward, we will continue to focus on sustainable profitability of growth, repaying TARP and helping support America’s economic recovery.” Of course, at the same time, Citigroup is notifying consumers across the country that interest rates are increasing, annual fees are returning, and grace periods are shrinking. And Citi is certainly not alone. It’s clear that all the major credit issuers have developed a renewed focus on profitable growth, but don’t be fooled into thinking it won’t come at a cost to average American cardholders. More »
Posted By: Joshua Heckathorn | Comments (2)Recurring Transfers: Will Your New Bank Drop the Ball?
October 7th, 2009
I used to have an online savings account with a popular national bank. Now, my account is with a different bank I happen to despise due to several poor customer service experiences.
Of course, I didn’t choose to take my business to this new bank. My old bank happened to tank in grand fashion and its competitor gobbled it up before things got even worse. I should just be happy that all is well and my savings are safe, right? More »
Posted By: Joshua Heckathorn | Comments (2)Early Adoption of the Credit CARD Act?
October 1st, 2009
Barney Frank, Chair of the House Financial Services Committee, and Rep. Carolyn Maloney (D-NY) are tired of waiting for their new bill to take effect. In fact, last week they announced new legislation that would move the effective date for the remaining provisions of the Credit CARD Act from next February to Dec. 1, 2009 – exactly two months from today.
In a press release issued by the House Financial Services Committee on 9/24, Maloney claimed that “credit card companies are taking advantage of this period between the signing of the bill and the current effective date.” There’s no doubt about that. As you may have experienced yourself, millions of consumers have been forced to deal with reduced credit limits and interest rate hikes averaging 20% ever since the bill was passed, and Maloney believes the “breadth and depth of the rate hikes happening now point to the need for faster consumer protections.” More »
Posted By: Elisabeth Chan | Comments (0)
