New guidelines proposed for credit card industry on clarkhoward.com

The Federal Reserve is proposing new guidelines for the credit card industry. These are simply proposed regulations; they haven't been finalized yet and may not be until after the November elections. The banks, predictably, are going berserk trying to push back on these proposals.

Here are some highlights of what's being considered:

• Banks would be required to give you a minimum of 21 days to pay a bill. That means statements would have to go out in a timely manner. Banks could no longer pull that funny business of sending out your statement a day or so before it's due.

• Credit card companies would no longer be allowed to raise rates on existing balances.

• Holds would no longer count toward your limit. This tactic is frequently used to force you over your limit. Holds are placed on your account when you use your card at a hotel, car rental counter or gas pump.

• Double-cycle billing -- often used to charge interest on a statement that's already been paid in full -- will be banned.

Keep in mind that these are only proposals. The aim is to make it look like there's a cop on the beat during an election year. These may be changed completely before they become the law of the land.

One thing is certain -- you can expect an uphill battle! Here's an example of the mentality coming from the banks: Capital One was recently investigated by California's state attorney general for its practices concerning customers. The company decided to change its registration from a state bank to a national one during the inquiry. That exempted them from the attorney general's scrutiny and allowed them to turn around and file a counter suit!

So what's the takeaway for you? Seize the power by not carrying a revolving balance on your credit card. Stop accumulating lifestyle debt and the banks will have no power over you.

What others are saying

Credit Cards
My husband and I recently started a small business and have a business credit card with ADVANTA Master Card which recently turned into a nightmare. they increased our interest rate from 7.99 to 31%. Apparently some very fine print in the flyer they send with every payment stated if we charged anything on it after October 3rd our rate would go up on the entire balance. We accused them of predatory lending and sneaky tactics with the "tiny print" notice. They did not deny our comments nor would they return our limit to the agreed upon 7.99%. The repersentative stated that a recent audit of our account inidated they did not like our spending habits and decided we were a high risk, even though what we had used was not even close to the limit they gave us. My husband asked them why they set a limit and then penalize the customer for using the credit line available by raising the interest rate to over 4 times the origninal interest rate! She had no comment. I say they know exactly what they are doing, and as for us we will be paying this loan and closing the account before they have a chance to charge us another month at that ridiculous interest rate. If you are planning on starting a small business DO NOT use ADVANTA - they are the epitomy of predatory lenders. We will never use them again - as John said "when pigs fly!"
By Denise @ 11/15/08 01:06:34 PMreport abuse
Lowering interest rates
I kept hearing all the financial experts saying to call your credit card companies and see if they would lower your interest rates. So i tried it with BofA Visa. Well guess what? They didnt answer the question they just tried to refer me to credit counseling when I havent never been late or missed a payment to them or any other debtor. A few days later in the mail I receive a letter where they have closed my account saying my income was not enough compared to my debt. As I said never missed a payment and never been late. I will never use them again no matter what they offer. Like john said when pigs fly. Then I took a look at my credit report and they had reported it closed by debt grantor. They really appreciate their loyal customers.
By Lisa @ 10/29/08 05:39:33 PMreport abuse
Desperate or Ruthless?
We've recently been on the recieving end of several unfriendly moves by Bank of America Visa that has caused my wife and I to quit dealing with Bank of America. First, they kept changing the due date untill we didn't notice; 1 day late triggered a 29% default interest rate. I called to see if they would lower the rate- the answer was a very firm NO. I paid off the balance on her card and cancelled my paid up- no balance card with them, and they billed us for an additional $60 on a paid off balance. The due date also has changed again from the 1st to the 29th of the prior month, fishing for another overdue penalty, I guess. Tactics like this have caused me to put them on the "When Pigs Fly" list. In the last two weeks I have gotten 2 envelops with blank checks from them, and an entire checkbook "for my convienence". I'll use them When Pigs Fly. John
By john @ 09/18/08 05:40:41 PMreport abuse
legal shylocks
Card comoanies penalize you for being late and other cards pick it up, raise their interest also. It is called universal default.; The new thing is opt out. Cancel your accoun or your interest goes up and it has to be in writing. /They lie. You cancel and the rates go up high as 32% legaly. The poor guy who is broke now is broker and living on the edge. Government lets them get away with it as the banks back the politicians. We must
CAP INTEREST RATES NOW AT A 10% AFFORDABLE RATE. IT IS NOW TIME TO REBEL AS THE WHOLE COUNTRY IS IN DEBT.
By Elza @ 06/01/08 01:57:38 AMreport abuse
Credit Card Industry Reforms
Do more than simply HOPE that "they" do something about the abuses in the industry. Call, write, email your congressperson and insist that these reforms be implemented. There is no question that our representatives listen to the voices of their constituents; remember the proposal for "amnesty" called a "comprehensive" plan? Don't leave it to "them" YOU DO IT! (and yes, I have)
By Susan Weed @ 05/24/08 12:14:46 PMreport abuse
Credit Unions
Hey, how come no one uses a Credit Union credit card? Credit unions are not-for-profit and have no incentive to gouge their members. Our CU credit card has a low interest rate and won't raise it if you make a late payment.
By Joe @ 05/22/08 01:08:44 PMreport abuse
Credit cards
Lets hope the people have a prayer with this one! We know the new bankruptcy rules were pretty much written and sanctioned by the evil credit card/banking industry. It's like being in the "It's a Wonderful Life" movie only Jimmie Stewarts character died!
By Julie @ 05/21/08 10:40:04 PMreport abuse
Change due date
I have a credit card account with Sam's Club. My fixed income is not in the bank until the 12-14th of month. I asked to have date changed. Response date has been changed in last 12 months. I'm looking at a bill with due date 9/9/05 which is and has been my billing. date for last three years. Show how much they care!
By Joe @ 05/21/08 11:30:14 AMreport abuse
Credit Cards
Credit should only be given by banks on rare circumstances, and if loans for businesses are given, final approval should entail at least two additional federal level banks, which would counter loans being given for payoffs. In addition, the same type of approvals should stand on residential loans. Our number one problem is that people find charging too easy, with no idea how they intend to pay it back. That puts our economy at risk. Multiply that risk by almost 400 million people in the USA, and we all lose. Strict lending is the only solution. Also, it's time to put actual cash behind credit - if the banks don't have it to loan, they should not be allowed to extend that practice. That would encourage banks to extend better interest rates on saving accounts, as we had in the 50's and 60's. Everyone wins.
By Nancy Hall @ 05/20/08 08:09:03 PMreport abuse
The Government Is the Source Of Financial Abuse
It is about time the government will do something about these financial abuses. Perhaps the government finally realizes that they are the main originating source of these abuses by the fact that they allow and close their eyes and make laws beneficial to the financial industry and to the disadvantage of the citizens and consumers. Let us hope and pray that this will materialize before someone gets donations from the lobbyist and blocks the passing of the law.
By fcmarrastia @ 05/20/08 12:00:18 AMreport abuse
I agree w/David Nut
...however credit cards are not the only type of borrowing that makes you a slave to the lender. Forget not the entire mortgage system, which propelled our enconomy into the decline it's to date? What about borrowing for school and cars or even home equity loans. Ideally, we should live within our means. However, that would leave a lot of people behind the eight ball and often. To quote a scripture is to believe that your trust is in G-D more than man or the credit system. Few have that level of faith to believe that G-D will supply all needs...In G-D We Trust is America's national motto. Picture that!
By Hopeful Jones @ 05/19/08 11:07:46 PMreport abuse
att universal
Watch aat universal card users.I got a note today with the choice of accepting new 14.97% over my previous 7.22% or closing my account.Some choice. I called to see if i was the problem.I called ,the lady thought it was funny,i'm "was" a charter member with excellant payment history.Goodbye att.
By Doubting Thomas @ 05/19/08 08:36:24 PMreport abuse
They wanna to have it both ways
Credit cards companies (or rather the banks) pushed for more stringent bankruptcy laws a few years ago, have tactics like raising interest and charging a late fee if someone is only a day late paying a late charge. Yet, they send out a relentless number of applications in the mail, citing how great their cards are? They want to punish financial irresponsiblity (or often simple oversights) , but use questionable marketing to promote their cards and money sucking services that go along with them.
By Bill @ 05/19/08 07:32:23 PMreport abuse
CREDIT CARDS/BANKS
I DON'T EXPECT ANY CHANGE OR VERY LITTLE IF ANY THESE CROOKS HAVE US BY TAIL AND ARE IN ALL THE BACK POCKETS OF 99% OF ALL ELECTED OFFICIALS .
By MICHAEL LONG @ 05/19/08 06:33:53 PMreport abuse
"Holds would no longer count toward your limit. "
The rest is fine, but I'm not sure about the "Holds would no longer count toward your limit." one. I mean, isn't the hold just to ensure that the charge will go through? If you don't have the available credit, how could the charge go through? That one doesn't make much sense. (But the rest does...)
By Mike @ 05/19/08 04:35:54 PMreport abuse
credit cards
If credit cards and banks were honest, these regulations woulnd't be needed. They are trying to legitimize their downright crooked practices and continue them. They are thieves anbd need to be accountable for their actions.
By Pamela @ 05/19/08 04:09:44 PMreport abuse
Credit?
Proverbs 22:7 -- The rich rule over the poor, and the borrower is slave to the lender.

Don't use credit cards.
By Dave Nut @ 05/19/08 01:35:48 PMreport abuse
Credit cards
I guess among the few things good about growing older is I have learned how to handle money. I understand when you're younger credit card debt is sometimes unavoidable but try to resist the constant burage of ads from car dealers and big screen TV manufactures. Another one is cell phone toys. Yes cell phones are great. I've got one myself but all this extra stuff videos, texting etc. in my opinion you don't need.

Just the ramblings of an old guy that has dug himself out of debt before.

Retirements good with money in the bank and no bills.

Good luck to you
By Donald Means @ 05/19/08 01:18:48 PMreport abuse
Credit Card Rip-Offs
Clark, My son has been having a difficult time finding a reliable credit card company. Case in point-Capital One would not raise his meager limit, but preferred rather to allow over-limit charges and then charge a $39 fee. He moved to a Circuit city Chase card, but unfortunately they are almost ripping him off worse than Capital One. Chase has this "grace period" of 20 days - from the date of purchase. How are you ever going to pay off a credit card in full if the bill comes after the 20 day period of the first charge after the cut-off. If you group has any credit cards with some morality - let me know.
By Ronald Johns @ 05/14/08 10:01:02 PMreport abuse
no more credit cards!
I've used my credit card on a regular basis for the past 5 years and never carried a balance, never had fees, interest, ect. They increased my limit by thousands every year because they consider me a "responsible customer" however on the last statement they added some fees and interest charges which no one can explain and only make excuses for. As a customer I'm fed up and can't wait around for the government to regulate them, so I will cut the card in pieces and mail that with my next statement! (And no more credit cards for me)
By Adriana @ 05/08/08 08:21:31 PMreport abuse
Get rid of the plastic
Plasectomies on your cards and attacking balances with a vengeance helps greatly. Not uncommon for me to weasel a 10-25% cash discount at furniture/appliance retailers when loaded with portraits of Ben, Ulysses, and Andrew. If I don't have enough cash, I'm getting too much stuff.
By Chris @ 05/08/08 07:48:46 PMreport abuse
Credit Cards are fine,..just pay your bill
I've had credit cards for years and have never carried a balance. I use them instead of cash, I don't have to worry about carrying a bunch of cash. The card issuers also provide rebates or extended warranties. However, I've NEVER carried a balance. From month to month. That's just not good judgement.
By Mike @ 05/08/08 04:18:59 PMreport abuse
Credit card? . . .what credit card?
We've been married for 24 years and maintained a modest single-income household ever since.

We cut up our credit cards in 1989 after paying of a whopping three hundred dollar balance!

It's now 2008 and we pay ALL our bills with $cash$ or $money-order$. All we have is one car note and a $600.00 monthly mortgage and have no room in our lives for all the drama encapsulated with having a credit card!

Perhaps when Uncle Sam steps up to the plate and regulates the industry pushing away all the LOOSERS with 60, 70, 80 THOUSAND dollar credit card dept we (may) consider one - merely for convenience...

Thanks Clark – Great Website!
By Debt Free in USA @ 05/08/08 02:05:22 PMreport abuse
credit cards and illegal drugs
carrying credit card balances are like using illegal drugs. once they get you hooked, they got you right where they want you...dependent on them. bite the bullet, cut your spending or get a part time job and pay them off. contrary to what you hear or are told, you can't borrow your way to prosperity nor refi your way to prosperity. the only solution is to get rid of the debt.
By brian @ 05/08/08 01:19:21 PMreport abuse
Credit Card regulation proposals
While the credit card industry is generally predatory, additional regulation would not be needed if people used their credit responsibly and paid their balance completely each month. Using Bill Pay or ACH debit can eliminate late payment.
By Robert Mills, CPA @ 05/08/08 01:18:22 PMreport abuse
interest calcs.on credit cards.
I wonder how credit card cos. calculate interest.recently my payment was due on a Sunday I paid on Monday ( that is what is normal practice where I come from and it is not late cos. Sat due will be paid on fri)I was told in no uncertain terms that that is not how it works here.You should have paid it on Fri. BEFORE 2 p.m. or else would still have incured late fee, heres the kicker my int.rate went from 11.99% to 29.99%.I was told that as a one time courtesy the late fee would be refunded but no mention of reducing the int rate to what it was.I will wait a couple of days and call back again.Would appreciate it very much if somebody could find out for me 1) Are we charged interest upto the due date (e.g.was i charged int. upto Sunday -even though they were not open to collect- and then slapped late fee and int rate hike) if I had paid on Fri would they have refunded the int. upto Sunday--mine is a very small bal.but I wonder hom many millions of people are being "taken" like this.Woul sure make one heck of a class action suit against the cc cos.especially the one that called the cops on an innocent guy.
By cass @ 05/08/08 12:33:57 PMreport abuse
Regulation is good here
I have been a victim of having my rates increased on existing balances, if I had not had an option to transfer, I would be missing a payment on one of my other bills.

I say regulate the credit card industry as much as Nuclear Power plants. I am angry at them and I want them to go bankrupt. I would rather see the entire industry collapse and companies go under than see what is happening now.
By Dave @ 05/08/08 10:54:32 AMreport abuse
One Man's Reasonable...
Micheal, anytime government interjects regulations into a market, it drives up costs and decreases competition. Instead of relying on government to make things "reasonable," consumers should us the power of the pocketbook to force credit card companies to change their ways. There are alternatives. You demonstrate that yourself by dropping Capital One because you don;t like their business practices. When enough consumers do that, they will change their ways without the need for government interference.
By John @ 05/08/08 10:36:19 AMreport abuse
Credit cards
I use my credit cards all the time and never pay a nickle in interest, I use them as a free 45 day loan, and just pay in full before the due date. They must hate me.
By Guy @ 05/08/08 12:13:35 AMreport abuse
Reason vs. Riches
All of these regulations seem very reasonable and it is ridiculous that they are not already in place.

Cap One has been doing some dodgy things lately. I am paying off that account and turning my back on them.
By michael @ 05/07/08 07:34:37 PMreport abuse

Credit Cards

My husband and I recently started a small business and have a business credit card with ADVANTA Master Card which recently turned into a nightmare. they increased our interest rate from 7.99 to 31%. Apparently some very fine print in the flyer they send with every payment stated if we charged anything on it after October 3rd our rate would go up on the entire balance. We accused them of predatory lending and sneaky tactics with the "tiny print" notice. They did not deny our comments nor would they return our limit to the agreed upon 7.99%. The repersentative stated that a recent audit of our account inidated they did not like our spending habits and decided we were a high risk, even though what we had used was not even close to the limit they gave us. My husband asked them why they set a limit and then penalize the customer for using the credit line available by raising the interest rate to over 4 times the origninal interest rate! She had no comment. I say they know exactly what they are doing, and as for us we will be paying this loan and closing the account before they have a chance to charge us another month at that ridiculous interest rate. If you are planning on starting a small business DO NOT use ADVANTA - they are the epitomy of predatory lenders. We will never use them again - as John said "when pigs fly!"

By Denise @ 11/15/08 01:06:34 PMreport abuse

Lowering interest rates

I kept hearing all the financial experts saying to call your credit card companies and see if they would lower your interest rates. So i tried it with BofA Visa. Well guess what? They didnt answer the question they just tried to refer me to credit counseling when I havent never been late or missed a payment to them or any other debtor. A few days later in the mail I receive a letter where they have closed my account saying my income was not enough compared to my debt. As I said never missed a payment and never been late. I will never use them again no matter what they offer. Like john said when pigs fly. Then I took a look at my credit report and they had reported it closed by debt grantor. They really appreciate their loyal customers.

By Lisa @ 10/29/08 05:39:33 PMreport abuse

Desperate or Ruthless?

We've recently been on the recieving end of several unfriendly moves by Bank of America Visa that has caused my wife and I to quit dealing with Bank of America. First, they kept changing the due date untill we didn't notice; 1 day late triggered a 29% default interest rate. I called to see if they would lower the rate- the answer was a very firm NO. I paid off the balance on her card and cancelled my paid up- no balance card with them, and they billed us for an additional $60 on a paid off balance. The due date also has changed again from the 1st to the 29th of the prior month, fishing for another overdue penalty, I guess. Tactics like this have caused me to put them on the "When Pigs Fly" list. In the last two weeks I have gotten 2 envelops with blank checks from them, and an entire checkbook "for my convienence". I'll use them When Pigs Fly. John

By john @ 09/18/08 05:40:41 PMreport abuse

legal shylocks

Card comoanies penalize you for being late and other cards pick it up, raise their interest also. It is called universal default.; The new thing is opt out. Cancel your accoun or your interest goes up and it has to be in writing. /They lie. You cancel and the rates go up high as 32% legaly. The poor guy who is broke now is broker and living on the edge. Government lets them get away with it as the banks back the politicians. We must
CAP INTEREST RATES NOW AT A 10% AFFORDABLE RATE. IT IS NOW TIME TO REBEL AS THE WHOLE COUNTRY IS IN DEBT.

By Elza @ 06/01/08 01:57:38 AMreport abuse

Credit Card Industry Reforms

Do more than simply HOPE that "they" do something about the abuses in the industry. Call, write, email your congressperson and insist that these reforms be implemented. There is no question that our representatives listen to the voices of their constituents; remember the proposal for "amnesty" called a "comprehensive" plan? Don't leave it to "them" YOU DO IT! (and yes, I have)

By Susan Weed @ 05/24/08 12:14:46 PMreport abuse

Credit Unions

Hey, how come no one uses a Credit Union credit card? Credit unions are not-for-profit and have no incentive to gouge their members. Our CU credit card has a low interest rate and won't raise it if you make a late payment.

By Joe @ 05/22/08 01:08:44 PMreport abuse

Credit cards

Lets hope the people have a prayer with this one! We know the new bankruptcy rules were pretty much written and sanctioned by the evil credit card/banking industry. It's like being in the "It's a Wonderful Life" movie only Jimmie Stewarts character died!

By Julie @ 05/21/08 10:40:04 PMreport abuse

Change due date

I have a credit card account with Sam's Club. My fixed income is not in the bank until the 12-14th of month. I asked to have date changed. Response date has been changed in last 12 months. I'm looking at a bill with due date 9/9/05 which is and has been my billing. date for last three years. Show how much they care!

By Joe @ 05/21/08 11:30:14 AMreport abuse

Credit should only be given by banks on rare circumstances, and if loans for businesses are given, final approval should entail at least two additional federal level banks, which would counter loans being given for payoffs. In addition, the same type of approvals should stand on residential loans. Our number one problem is that people find charging too easy, with no idea how they intend to pay it back. That puts our economy at risk. Multiply that risk by almost 400 million people in the USA, and we all lose. Strict lending is the only solution. Also, it's time to put actual cash behind credit - if the banks don't have it to loan, they should not be allowed to extend that practice. That would encourage banks to extend better interest rates on saving accounts, as we had in the 50's and 60's. Everyone wins.

By Nancy Hall @ 05/20/08 08:09:03 PMreport abuse

The Government Is the Source Of Financial Abuse

It is about time the government will do something about these financial abuses. Perhaps the government finally realizes that they are the main originating source of these abuses by the fact that they allow and close their eyes and make laws beneficial to the financial industry and to the disadvantage of the citizens and consumers. Let us hope and pray that this will materialize before someone gets donations from the lobbyist and blocks the passing of the law.

By fcmarrastia @ 05/20/08 12:00:18 AMreport abuse

I agree w/David Nut

...however credit cards are not the only type of borrowing that makes you a slave to the lender. Forget not the entire mortgage system, which propelled our enconomy into the decline it's to date? What about borrowing for school and cars or even home equity loans. Ideally, we should live within our means. However, that would leave a lot of people behind the eight ball and often. To quote a scripture is to believe that your trust is in G-D more than man or the credit system. Few have that level of faith to believe that G-D will supply all needs...In G-D We Trust is America's national motto. Picture that!

By Hopeful Jones @ 05/19/08 11:07:46 PMreport abuse

att universal

Watch aat universal card users.I got a note today with the choice of accepting new 14.97% over my previous 7.22% or closing my account.Some choice. I called to see if i was the problem.I called ,the lady thought it was funny,i'm "was" a charter member with excellant payment history.Goodbye att.

By Doubting Thomas @ 05/19/08 08:36:24 PMreport abuse

They wanna to have it both ways

Credit cards companies (or rather the banks) pushed for more stringent bankruptcy laws a few years ago, have tactics like raising interest and charging a late fee if someone is only a day late paying a late charge. Yet, they send out a relentless number of applications in the mail, citing how great their cards are? They want to punish financial irresponsiblity (or often simple oversights) , but use questionable marketing to promote their cards and money sucking services that go along with them.

By Bill @ 05/19/08 07:32:23 PMreport abuse

CREDIT CARDS/BANKS

I DON'T EXPECT ANY CHANGE OR VERY LITTLE IF ANY THESE CROOKS HAVE US BY TAIL AND ARE IN ALL THE BACK POCKETS OF 99% OF ALL ELECTED OFFICIALS .

By MICHAEL LONG @ 05/19/08 06:33:53 PMreport abuse

"Holds would no longer count toward your limit. "

The rest is fine, but I'm not sure about the "Holds would no longer count toward your limit." one. I mean, isn't the hold just to ensure that the charge will go through? If you don't have the available credit, how could the charge go through? That one doesn't make much sense. (But the rest does...)

By Mike @ 05/19/08 04:35:54 PMreport abuse

credit cards

If credit cards and banks were honest, these regulations woulnd't be needed. They are trying to legitimize their downright crooked practices and continue them. They are thieves anbd need to be accountable for their actions.

By Pamela @ 05/19/08 04:09:44 PMreport abuse

Credit?

Proverbs 22:7 -- The rich rule over the poor, and the borrower is slave to the lender.

Don't use credit cards.

By Dave Nut @ 05/19/08 01:35:48 PMreport abuse

I guess among the few things good about growing older is I have learned how to handle money. I understand when you're younger credit card debt is sometimes unavoidable but try to resist the constant burage of ads from car dealers and big screen TV manufactures. Another one is cell phone toys. Yes cell phones are great. I've got one myself but all this extra stuff videos, texting etc. in my opinion you don't need.

Just the ramblings of an old guy that has dug himself out of debt before.

Retirements good with money in the bank and no bills.

Good luck to you

By Donald Means @ 05/19/08 01:18:48 PMreport abuse

Credit Card Rip-Offs

Clark, My son has been having a difficult time finding a reliable credit card company. Case in point-Capital One would not raise his meager limit, but preferred rather to allow over-limit charges and then charge a $39 fee. He moved to a Circuit city Chase card, but unfortunately they are almost ripping him off worse than Capital One. Chase has this "grace period" of 20 days - from the date of purchase. How are you ever going to pay off a credit card in full if the bill comes after the 20 day period of the first charge after the cut-off. If you group has any credit cards with some morality - let me know.

By Ronald Johns @ 05/14/08 10:01:02 PMreport abuse

no more credit cards!

I've used my credit card on a regular basis for the past 5 years and never carried a balance, never had fees, interest, ect. They increased my limit by thousands every year because they consider me a "responsible customer" however on the last statement they added some fees and interest charges which no one can explain and only make excuses for. As a customer I'm fed up and can't wait around for the government to regulate them, so I will cut the card in pieces and mail that with my next statement! (And no more credit cards for me)

By Adriana @ 05/08/08 08:21:31 PMreport abuse

Get rid of the plastic

Plasectomies on your cards and attacking balances with a vengeance helps greatly. Not uncommon for me to weasel a 10-25% cash discount at furniture/appliance retailers when loaded with portraits of Ben, Ulysses, and Andrew. If I don't have enough cash, I'm getting too much stuff.

By Chris @ 05/08/08 07:48:46 PMreport abuse

Credit Cards are fine,..just pay your bill

I've had credit cards for years and have never carried a balance. I use them instead of cash, I don't have to worry about carrying a bunch of cash. The card issuers also provide rebates or extended warranties. However, I've NEVER carried a balance. From month to month. That's just not good judgement.

By Mike @ 05/08/08 04:18:59 PMreport abuse

Credit card? . . .what credit card?

We've been married for 24 years and maintained a modest single-income household ever since.

We cut up our credit cards in 1989 after paying of a whopping three hundred dollar balance!

It's now 2008 and we pay ALL our bills with $cash$ or $money-order$. All we have is one car note and a $600.00 monthly mortgage and have no room in our lives for all the drama encapsulated with having a credit card!

Perhaps when Uncle Sam steps up to the plate and regulates the industry pushing away all the LOOSERS with 60, 70, 80 THOUSAND dollar credit card dept we (may) consider one - merely for convenience...

Thanks Clark – Great Website!

By Debt Free in USA @ 05/08/08 02:05:22 PMreport abuse

credit cards and illegal drugs

carrying credit card balances are like using illegal drugs. once they get you hooked, they got you right where they want you...dependent on them. bite the bullet, cut your spending or get a part time job and pay them off. contrary to what you hear or are told, you can't borrow your way to prosperity nor refi your way to prosperity. the only solution is to get rid of the debt.

By brian @ 05/08/08 01:19:21 PMreport abuse

Credit Card regulation proposals

While the credit card industry is generally predatory, additional regulation would not be needed if people used their credit responsibly and paid their balance completely each month. Using Bill Pay or ACH debit can eliminate late payment.

By Robert Mills, CPA @ 05/08/08 01:18:22 PMreport abuse

interest calcs.on credit cards.

I wonder how credit card cos. calculate interest.recently my payment was due on a Sunday I paid on Monday ( that is what is normal practice where I come from and it is not late cos. Sat due will be paid on fri)I was told in no uncertain terms that that is not how it works here.You should have paid it on Fri. BEFORE 2 p.m. or else would still have incured late fee, heres the kicker my int.rate went from 11.99% to 29.99%.I was told that as a one time courtesy the late fee would be refunded but no mention of reducing the int rate to what it was.I will wait a couple of days and call back again.Would appreciate it very much if somebody could find out for me 1) Are we charged interest upto the due date (e.g.was i charged int. upto Sunday -even though they were not open to collect- and then slapped late fee and int rate hike) if I had paid on Fri would they have refunded the int. upto Sunday--mine is a very small bal.but I wonder hom many millions of people are being "taken" like this.Woul sure make one heck of a class action suit against the cc cos.especially the one that called the cops on an innocent guy.

By cass @ 05/08/08 12:33:57 PMreport abuse

Regulation is good here

I have been a victim of having my rates increased on existing balances, if I had not had an option to transfer, I would be missing a payment on one of my other bills.

I say regulate the credit card industry as much as Nuclear Power plants. I am angry at them and I want them to go bankrupt. I would rather see the entire industry collapse and companies go under than see what is happening now.

By Dave @ 05/08/08 10:54:32 AMreport abuse

One Man's Reasonable...

Micheal, anytime government interjects regulations into a market, it drives up costs and decreases competition. Instead of relying on government to make things "reasonable," consumers should us the power of the pocketbook to force credit card companies to change their ways. There are alternatives. You demonstrate that yourself by dropping Capital One because you don;t like their business practices. When enough consumers do that, they will change their ways without the need for government interference.

By John @ 05/08/08 10:36:19 AMreport abuse

I use my credit cards all the time and never pay a nickle in interest, I use them as a free 45 day loan, and just pay in full before the due date. They must hate me.

By Guy @ 05/08/08 12:13:35 AMreport abuse

Reason vs. Riches

All of these regulations seem very reasonable and it is ridiculous that they are not already in place.

Cap One has been doing some dodgy things lately. I am paying off that account and turning my back on them.

By michael @ 05/07/08 07:34:37 PMreport abuse

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May 07, 2008 -- New guidelines proposed for credit card industry

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