Credit Card Curtail

Posted at 6:37 AM, May. 22, 2009

This is a step in the right direction.  Congress has now passed a bill that will prevent banks from arbitrarily raising interest rates on consumers. 

The new regulations would make it harder to get credit to those under the age 21 and banks would not be able to raise interest rates unless a consumer was no less than sixty days delinquent and to reinstate previous rates if the consumer has paid the minimum payment on time for at least six months following.

Banks on the other hand, argue that this is a tremendous blow to the economy for it will force them to raise the bar of interest rates to all credit card holders and to bring back annual fees.  The claim is it will make credit even harder to acquire. 

It's about time.