Anyone got a link to a simple explanation of the new law that goes into effect Monday that changes how credit cards can change interest rates and things like that?
Thanks. What I'm getting out of your links and other sources is that one thing that's bothered me in the past (namely large penalties for paying late a single time) will no longer take place, and this is a good change for me. But that credit card companies may change some policies to try and make up for their lost money such as charging a yearly fee, so I need to keep my eyes open for those as they would be a bad thing for anybody.
Eleven months out of twelve I'm a model credit card user: paying off the balance in full before the deadline. That twelfth month though something comes up and I entirely forget to pay, or I pay after the deadline, and in the past this has led to things like straight up late fees and 29% interest rates for that month. So as long as none of the cards I use decide to start charging yearly or per-use fees, this sounds like it could be a win for me.
I've experienced having two accounts on one card (unknowingly) and having my payment applied to the account that didn't carry a balance and then getting slammed with a late fee on the leg of it.
Fortunately, customer service fixed this for me when I called to complain.
You are not what the card issuers consider a model customer. You are a leech (in their thinking). Anyone who pays off their balance before interest payments are due is costing they money. They like people to maintain a balance as close as possible to their maximum, and make the minimum payment each month. That way they maximize profits.
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http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/What-the-new-credit-card-law-means-for-you.aspx
More details:
http://www.creditcards.com/credit-card-news/credit-card-law-interactive-1282.php
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Eleven months out of twelve I'm a model credit card user: paying off the balance in full before the deadline. That twelfth month though something comes up and I entirely forget to pay, or I pay after the deadline, and in the past this has led to things like straight up late fees and 29% interest rates for that month. So as long as none of the cards I use decide to start charging yearly or per-use fees, this sounds like it could be a win for me.
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Fortunately, customer service fixed this for me when I called to complain.
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