Although conventional wisdom and, hell, a Harvard study on the credit card reform to be brought about in the CARD act says the changes will help out Joe MasterCard, the prognosis for credit card victims — er, customers — isn’t all rosy.
A tax attorney offers some chilling words to Modern Medicine:
“It is good for most consumers,” says David Schiller, a tax attorney with Schiller Law Associates in Norristown, Pennsylvania. “However, just like airlines now charging for pillows and to use the toilets, the credit-card companies will find other ways to make back the losses from the legislation.”
Schiller thinks credit cards will reduce or do away with cash-back and air plane miles offers. His reasoning seems sound, but bear in mind credit cards didn’t come up with such promotions out of the goodness of their hearts. They’re basically ways banks trick customers into using their cards, hoping they’ll be slow with paying off the balances and rack up interest charges that dwarf what customers reap in rewards.