Credit Law Update: Good Customers See Higher Fees & Rates, Lower Credit Scores
Yesterday, we told you about the first of a slew of new credit card laws that kicked in. In February, even stronger consumer protections kick in that limit a credit card company’s ability to levy fees, fines and change interest.
The big lenders warned this would hurt the profits, but they’re not waiting to see what will happen. Instead, there are reports that they’re taking preemptive action and punishing the good consumers who pay their bills on time and are responsible with their credit.
CBS reports on interest rate increases and new annual fees from most of the major card companies. Across the board, the average interest rate is up almost half a percentage point since the new laws were signed. Included in the report:
- Capital One raising rates to 12 percent
- Discover increasing fees 30 percent
- New annual fees from Citigroup
CBS also has this shameful tale from one woman:
Outside Tampa, Pam and Joe Fortune never missed a payment, but still saw their interest rates on one of their Bank of America cards more than double to 39 percent.
Sadly, it seems anyone and everyone is a target. The Chicago Tribune’s Gail Marks-Jarvis reports on the millions of people who recently had their credit lines decreased. Why does this matter? A reduction in your credit can negatively affect your credit score. The worst part: According to the report, half of these people had excellent credit scores.
So even though credit card help is on the way, you must be aware. Read your statements closely and watch out for new fees and new interest rates.
Learn how filing Chapter 7 bankruptcy may impact your credit card debt.