BillShrink Says Credit Card Companies Are Far From Reformed

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)

Comments

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  1. DirectMailFan says:

    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?

  2. FatLynn says:

    Is it really the CC’s job to educate borrowers on the dangers of minimum payments?

  3. Blueskylaw says:

    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

    • SybilDisobedience says:

      @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.

    • Mr_D says:

      @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.

  4. PLATTWORX says:

    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.

    • NeverLetMeDown says:

      @PLATTWORX:

      Agreed – by the same token, how many people are voluntarily paying extra taxes now because they think rates may rise in the future?

    • floraposte says:

      @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.

  5. H3ion says:

    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.

    • joepa1 says:

      @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.

      • oneandone says:

        @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.

  6. AllanG54 says:

    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.”

    • Coelacanth says:

      @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.

    • RogerTheAlien says:

      @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.

  7. Telekinesis123 says:

    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.

  8. HogwartsAlum says:

    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?

  9. HurfDurf says:

    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.