Credit Card companies attempt an end run around new regulations

Earlier this year, Congress passed credit card reform with the aim of preventing card companies from predatory and unfair practices. The changes were scheduled to take effect February 2010. One can guess why the companies received such a long lead time before the regulations started. They are big contributors after all.
The credit card companies are rushing to jack up rates and tack on additional charges ahead of these new regulations. This week I noticed that both Chase and Citi had jacked my interest rates on personal cards to above 20%. This is in spite of exemplary payment history. In fact, it’s extremely rare that I even carry a balance. Nevertheless, as a business owner, when it gets more expensive for consumers to shop, it hurts me. What a stupid thing as we approach the holiday season when we hope the American consumer is able to return to the stores.
Fortunately, the House of Representatives has voted to rush implementation of some of the regulations and freeze rates by December 1. The Senate should do the same. The Consumers Union, the nonprofit publisher of Consumer Reports magazine, has a form letter than you can fill out to be sent to your Senators or you can find your Senator on your own and voice your opinion.. Let him or her know how you feel about the delay in credit card reform and urge them to join the House in pushing up enactment.

And watch your mailbox. Don’t be surprised if you get a little notice from your credit card company that you’re getting screwed too.