Credit Card companies, which must shape up Dec. 1 in order to comply with government-mandated reforms, aren’t exactly rushing to shape up, reports BillShrink, a site that lets you compare credit cards, cell phone plans and other services.
BillShrink’s research found that no companies are complying with the Credit Card Act‘s rules that issuers allocate payments fairly and educate customers about the pitfalls of only making minimum payments. BillShrink runs down the major changes of the new laws and tracks the percentage of credit card companies that are currently complying with each:
· 0% of issuers allow for fair allocation of payments
· 0% of issuers educate customers on dangers of minimum payments
· 50% offer protection from arbitrary rate increases
· 80% have eliminated universal default
· 95% of issuers have eliminated fees from double-cycle
· 95% now give cardholders enough time to pay their bill
Looks like Dec. 1 can’t come soon enough.
Credit Card Bill of Rights: Which cards are complying? [BillShrink]
(Photo: kainr)
More From Consumerist
-
Barnes & Noble Warns Of Credit Card Breach At 63 Stores
-
Visa, MasterCard Agree To Let Merchants Add Surcharges To Credit Card Purchases
-
Get Ready To Pay Surcharge Every Time You Pay With Credit Card
-
CFPB: Credit-Reporting Firms Often Ignore Consumers’ Evidence In Report Disputes
-
If You’re Going To Give Gift Cards, Consider Store-Branded Cards First
Surprise, surprise, surprise.
But I’m sure they’ll get it all together come Dec. 1. After all, their execs would face some heavy fines and/or jail time if they didn’t … right?
@DirectMailFan:
More likely a harshly worded letter. If that.
Is it really the CC’s job to educate borrowers on the dangers of minimum payments?
@FatLynn: I assume this is a rhetorical question, since the article states that they must now do this to comply with the law. So the real question is, “Are they complying with the law that’s about to come into force?”
@Eyebrows McGee (now with more baby!): Oh, my mistake. You are correct.
@FatLynn: From a personal finance aspect, no – each person should be responsible for their own actions and finances. From a legal aspect, no – until Dec 1, when it the answer changes to YES.
@FatLynn: Just about as much as a drug dealer has to educate you on the dangers of meth!
All changes benefitting consumers will occur
December 1, 2009, as per the spirit of the law.
Until then, you can go pound sand.
Sincerely,
Your Credit Card Company
@Blueskylaw:
P.S. Our dedicated team is busy looking for legal loopholes, and if that fails, we’ll be taking your state representatives out to lavish dinners and slipping them perks to make sure this “reform” is as neutered as well-meaning laws always are.
@Blueskylaw: I really doubt credit card companies want anything to do with the “spirit” of the law. They’ll comply to the letter and nothing else.
I am unsure why Billshink is expecting credit card companies to be complying NOW with a law going into effect December 1.
After December 1, then perhaps this “research” would have merit.
@PLATTWORX:
Agreed – by the same token, how many people are voluntarily paying extra taxes now because they think rates may rise in the future?
@PLATTWORX: It’s interesting because they have changed to compliance on so many aspects of the act already. Therefore it’s enlightening to see what they’re waiting until the last minute on.
Of course the credit card companies are slipping in every trick they can between now and December 1 including trimming the rolls of customers they don’t want (probably only for profitability reasons) and jacking up rates. I can’t say I shed many tears for the credit card companies.
@H3ion: How about for the folks whose rates were jacked up, lines were lowered or closed, rewards were reduced and min pay increased? And for all those that don’t carry a balance BA is looking to apply an annual fee. Personally I was fine before the law was changed to help me.
@joepa1: I’m sorry we disturbed you. I prefer that the benefits I get from having a credit card not be the result of many other people being screwed really unfairly.
And I can’t understand that in this day and age people don’t know not to get into debt they can’t afford. I can see if it’s something sudden but piling up debt for years until it runs into thousands of dollars is just stupid and as Gump says…”stupid is as stupid does.”
@AllanG54: As it’s been mentioned time and time again, sometimes incurring debt isn’t voluntary. Lots of people encounter long stretches of unemployement, expensive medical bills, and higher education.
@AllanG54: As a person who, at one time, had $20K in CC debt (now debt-free, aside from my mortgage), I blame people individually, yes. But also, we’ve gone away from things that seem antiquated now, but perhaps were actually quite helpful. I’m thinking things like Home Economics class. It taught budgeting, how to make food at home, how to shop around for good deals. All kinds of stuff that we think of as being somehow an anachronistic, but I don’t think people had so much debt back in the 50s. But, I could be wrong since I wasn’t alive back then.
This just goes to show that a credit card companies will do the absolute minimum required of it by law irregardless of what its propagandist image it tries to create for itself through its commercials.
I thought this went into effect in July. I’m confused.
I need to get a credit card for emergencies. Should I wait until then to start shopping around?
My best and most used (and dutifully paid) card is changing my 8.99 % fixed interest rate to a variable rate somewhere around 14-17% 3 days before these rules go in to effect.
I assume they are doing this to me because I pay 8 times the minimum due, I pay the moment I get an email that my balance is due, and I continued to pay this way through 8 months of unemployment. Obviously, I’m the asshole that deserves this treatment.