NEW CREDIT CARD LAWS 2010
New credit card laws took effect February 20, 2010. In case you don't understand what the new laws do, the staff of the Frumious Bandersnatch has studied the matter, abused several credit cards, and found out the following:
The new rules are supposed to protect consumers. If you believe that, you must also believe that the Republican Party has a health care plan that will reduce your health insurance premiums and improve your health care.
All the new rules do is to make sure the credit card company tries to tell you in more plan language that they are no better than the street corner loan shark. The only meaningful difference between a credit card company and a street corner loan shark, is the credit card company won't hire someone to break your legs if you default...at least not until the GOP gets control of the US House and Senate.
Credit card companies now have to disclose how long it will take you to pay off the principal on your debt if you keep making minimum monthly payments. The word is most people will be surprised. It will take you as long to pay off your debt as a Hostess Twinkee will be edible. At least 1,000 years.
Credit card companies are not supposed to unilaterally change your rates unless they have a really good reason to. A really good reason is it was cloudy this morning.
In anticipation of the new rules, many credit card companies raised rates, added annual membership fees, and reduce people's credit lines.
Even one of our gas company credit cards reduced our line of credit. Do they think gas prices are going down? I don't think so. Now we have to pay cash for gas...not a bad concept actually.
The credit card industry got caught in the economic recession when everyone lost their jobs, got frightened and realized they couldn't continue to make their monthly payments, so millions defaulted on their cards. The best new job market lately is working for collection agencies, browbeating credit card holders into making a token payment on their debt so the 6 month limit before the bank has to write off the debt kicks in.
The one thing not included in this round of credit cad reform law was a printed warning on the cards saying This card is addictive and may cause you bankruptcy or suicide."
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