Indianapolis, Nov 06, 2009 /PRNewswire-USNewswire via COMTEX/ – Push by credit card companies will increase interest rates to more than 30 percent, cut credit limits, and add new fees, even for customers who pay their bills on time
Robert Johnson, President of Consumers for Competitive Choice (C4CC), issued the following statement in response to reports that credit card companies are rushing to increase interest rates to historic highs of more than 30 percent, cut credit limits, and add new fees, even for customers who pay their bills on time. All this in advance of the February 22 enactment of the “Credit Card Accountability, Responsibility and Disclosure Act of 2009,” or “CARD Act” which provides tougher federal regulations for credit cards:
“The credit card companies just don’t seem to get it. In response to mounting complaints regarding poor business practices, Congress finally takes appropriate steps to reign in the greed and consumer abuse that has been running rampant for years and how do the card companies react? They squeeze small businesses and consumers one last time before federal regulations take effect. It is tactics just like this that credit card companies are known for that prompted the Congress to take action in the first place.
“Unemployment is now the highest that it has been in 26 years, and in this weakened economy small businesses and consumers everywhere are struggling. Yet somehow while we struggle to get by, credit card companies continue to make millions – with Visa profits alone recently reported at $514 million for its fiscal fourth quarter. A 30% interest rate for any credit card holder is absolutely ridiculous – combine that rate with transaction fees, lower credit limits, and more – it seems that anything is fair game for these guys. How far is too far for them?
“The grace period given to credit card companies before federal regulations are set to take effect was meant to allow them to get their own houses in order. Not to spread financial disorder to card users and merchants. Card companies have blatantly taken advantage of loopholes to increase the very interest charges, late fees and new user fees that the CARD Act was meant to limit. These devious behaviors hurt our small businesses and consumers at a time when they can least afford it, and they have got to stop.”
For more information, visit the Credit Card Con website at www.thecreditcardcon.com.
SOURCE Credit Card Con
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