Next time you brush past your credit limit you may get hit with more than a hefty over-the-limit fee. The Red Tape Chronicles reports that credit card companies are starting to slap exuberant spenders with penalty interest rates. Compounding the danger to consumers, creditors are simultaneously rushing to slash credit limits.
penalties
By 2.4.08
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Former electric heater company Vornado will pay the government a civil penalty of $500,000 and deny any wrongdoing for failing to report incidents of heater fires from 1993 to 2004, says the CPSC.
Nobody Knows The True Cost Of Credit
By 12.31.07
Credit card companies make it impossible for consumers or markets to know the true cost of credit, according to Georgetown Law professor Adam Levitin. The professor makes his point with a pop quiz:
… what’s the interest rate on the credit cards you’re carrying? How about the default rate? Do you know what constitutes an event of default? What will trigger a penalty fee or surcharge? How much are those fees? If you’re like most Americans, you probably cannot answer many or all of these questions.
New Legislation Would Limit Wireless Contract Termination Penalties
By 9.18.07
Two advocacy groups, the Consumer Federation of America and the Consumers Unions, endorsed a bill yesterday that would limit the amount that wireless, cable, and telephone companies could charge customers for early cancellation of their contract. Specifically, it would require companies to waive cancellation fees for the first 30 days, and pro-rate any fees after the first 30 days (something Verizon already does, but no other mobile carrier that we know of).
Introducing The Most Impressive Cell Phone Bill Of The 110th Congress
By 9.8.07
Senators Amy Klobuchar (D-MN) and Jay Rockefeller (D-WV) recently announced plans to introduce our wet dream of a cellphone bill. The bill realizes our wildest legislative fantasies: a world where cellphone companies stop inventing official-sounding fees and levying harsh ETFs, and instead allow their customers to take unlocked phones to the company with the best reception according to precise coverage maps provided free of charge.
House Passes Two Anti-Spyware Measures
By 6.9.07
The House has passed not one, but two cleverly-named measures targeting the miscreants who make and promote spyware. Though the FTC, Justice Department, and several state attorneys general are already empowered to prosecute spyware manufacturers, the two measures would extend existing laws by subjecting spyware makers to jail terms and multimillion-dollar fines.
