Banks Are Raising Credit Card Debt Rates On Faithful Customers To Make Profits
Banks are raising the interest rate on credit card debt accounts before the new credit card law reform goes into effect early next year. They are raising interest to as much as 30% on the credit card debt accounts on customers with good credit ratings and who make their payments on time each month.
Now, word has it that many law makers are thinking it maybe necessary to pass the credit card debt reform law sooner to protect consumers with any kind of credit card debt from abusive tactics being demonstrated by the credit card companies.
The President signed the Credit Card Accountability, Responsibility and Disclosure Act into law to make interest rates charged and fees to the banking intuitions fair and not biased to the banks in May of this year.
December the 1st of this year is the new date that the credit card debt reform law would go into effect if Congress does decide to step in and put the bill in law sooner.
Banks have started canceling accounts on customers with credit card debt accounts they think are more beneficial to the borrower than to the banks. And it doesn’t matter how good of a customer the account holder has been or how long the credit card debt customer has been with the bank and made their monthly payments on time.
Rushing to get ahead of the new credit card debt reform bill has many banks jacking up interest rates and converting fixed rate credit cards to variable rate cards. They are doing this to get more interest profit from their customers. They have also begun changing the contract terms and cutting cardholders interest rates all in the name of the mighty buck.
Citibank for example began charging annual fees on credit card debt accounts contrary to the original contracts signed at the time of the accounts agreement to be no annual fee accounts.
Many banks are considering charging inactivity fees on credit card debt cardholders in the future or even charge the fees on credit cards they deem isn’t showing enough usage.
For More Information On Eliminating High Credit Card Debt Click Here
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