As the economy continues to improve, credit card issuers have begun to loosen their vice grip on lending standards in order to raise borrowing limits for consumers. But the move to provide extend credit to those with blemished histories has raised concerns with consumer groups.
Federal law currently bars companies from making automated, pre-recorded calls to your cellphone without obtaining explicit prior consent, but banks want to kick down that legal barrier so they can robocall without fear of penalties. In February, 60,000 consumers asked the FCC to just say no to opening this loophole, and today another 130,000 Americans are adding their voices in opposition to robocalls. [More]
Under the Telephone Consumer Protection Act, companies can’t robocall you on your cellphone unless you’ve given them prior consent to contact you at that number. Now the banking industry is trying to gain exemptions for this rule, claiming there are times when they just need to call your cellphone even though the need isn’t urgent enough to have an actual human make that call. They also don’t want to be penalized for robocalling the wrong number. [More]
The Federal Reserve unveiled its ruling today on the fees banks can charge merchants for processing debit cards at 21 cents a swipe. The cap is far less restrictive than the 12 cent ceiling set by the Dodd-Frank bill, but is still less than the current 44 cent average. It’s uncertain how this will affect the consumer.
What’s going on inside the minds of credit card companies now that the CARD credit card reform act is coming down the pike? A customer service supervisor for a major credit card company emailed us to give us the low-down: reduced grace periods, cutting credit lines, increased fees on balance transfers, and, of course, jacked up APRs. Here’s the details:
The American Bankers Association sent a letter to Senators yesterday to voice their opposition to the credit card reform act. Their big thing is they say the bill will make it so there’s less credit available, and it will cost consumers more. Definitely something worth bringing up when we interview Austan Goolsbee, senior economic adviser to Obama, in DC tomorrow. Here’s the letter:
Credit card reform is bad, says the American Bankers Association, an industry trade group. The ABA sent a letter around to Senators on Tuesday warning against credit card reform. They say that new regulation will mean credit card companies will have to cut off credit to some consumers completely “when they need it most.”