Clark calms the hysteria surrounding the new credit card rules on clarkhoward.com

The nation's new credit card rules have caused all kinds of unnecessary overreaction and Clark wants to take a moment to calm some of the hysteria.

There have been "woe is me" articles everywhere speculating wildly about the end of credit as we know it. One headlines even proclaimed, "Credit cards are going back to the '50s, low limits and only for the rich."

Come on, capitalists adjust! The only reason we had these rules in the first place is because things became too unbalanced with "gotchas" hidden in mice type.

The new rules lay down some basic guidelines; they don't mean that banks can't make any money in the credit card market. They simply mean that banks can't continue to retroactively cheat you with low teaser rates, where they get you all charged up and then switch the rate. Nor can they continue the unfair practice of sending around those mailers that advertise a "fixed rate" that isn't really a fixed rate.

But the dire predictions about no credit cards being available in the future are just false. Companies will figure out how to compete for market share under the new rules.

Meanwhile, the idea that banks can impose whatever terms they wish on us is baloney. Credit unions and stock brokerage houses are busting up the banks' stranglehold on the credit card market. We will still have plenty of competition and choice.

So don't fret. It's not like a party has ended. The party is actually just beginning -- the party of more responsible lending and charging is coming.

Meanwhile, "croak and choke" insurance that's intended to protect your family in the event you die with credit card debt is a complete rip, according to The Wall Street Journal.

Their findings suggest that for the price of $5,000 of coverage, you could buy a $250,000 life insurance policy for your heirs. Also, check your statement and make sure you're not being defaulted into a "croak and choke" insurance option, as Clark's mom was!

What others are saying

10 yr old credit card
Bank of America got in contact with my son regarding an unpaid credit card that is 10 years old, they want him to pay the balance of 5000. plus 10,000. back interest, what can he do. he is working 70 hours a week and can hardly get by. the only bank account he has ever had was also with Bank of America. they could have gotten intouch with him at any time. the lawyer that called him said the file has been on his desk since 2004 and they are just now calling him about it.
By wanda kitchen @ 10/22/09 08:56:08 PMreport abuse
re
Thanks for post. It’s really informative stuff.
I really like to read.Hope to learn a lot and have a nice experience here! my best regards guys!
Credit card offers--Credit card offers
By roxyrohit @ 08/31/09 03:13:58 PMreport abuse
credit union switching terms midstream.
My federal credit union(Sikorsky) is using this legislation to change the terms on ALL it's visa cards to a variable rate; prime plus 6.5%, even on outstanding balances. When I asked why they sited the "new legislation" and that ALL credit cards are going to be variab;e. When I Specifically what part of the legislation required variable rates, it was absolute silence. Are all credit cards going to be variable in the future. Doesn't seem like banks are doing what they were supposed to do with the bailout money whatsoever.
By Frank @ 08/13/09 05:35:43 AMreport abuse
Add another company to the list
Bank America is doing a similar thing by raising its fees. And one day while I was talking to them about a cash advance the woman on the other end decided then and there to drastically lower the credit limit on both of my credit accounts. A follow-up letter was mailed to me from them, but even so I hardly had time to change my automatic debits from their card when I started receiving over the limit fees. There oughta be a law!
By By Charles @ 07/22/09 12:43:31 AMreport abuse
ALL CREDIT CARD COMPANIES ARE THE SAME
After giving my pleas to Clark to lead the people in a revolution I read some of the other comments in this column and realized that there are some really uninformed people in this country. All credit card companies are doing the same thing. Chase and Capital One included. We have had a Capital One card for over twenty years and they just informed us that our rate was going from 7% to 17%. Chase did it just the week before. The people that have those cards will be getting their notices soon if they have not already. Now let's see how wonderful you think you card company is...
By Jim Ingersoll @ 06/22/09 12:48:03 PMreport abuse
Credit Cards and Credit card banks
It is time for a revolution in this country and it is up to you Clark to begin this revolution. There has to be a way that WE THE PEOPLE can bring these banks and credit card companies to their knees. They need to be begging for business and not demanding more profits through raising rates. Is there not one way THE PEOPLE can make this happen? Clark we need your help. Why are we so weak as a country against this type of terrorism? That is exactly what the banks are doing. They are taking our treasury and using it and penalizing those of us that are creating the treasury. What is up with that Clark? You need to organize and lead the people Clark. Please help us. Those of us with good credit histories are being penalized because these companies decided to give dogs, cats, children and even dead people credit cards. The CEOs of these companies are making millions and yet penalizing those that are paying their bills on time and keeping their credit in good shape. Where is the "free market" when you have banks uniting on rates and gas distributors uniting on price of gas. There is no "free market". It is all smoke and mirrors. Clark it is time for you to step up for the little guy and help us put these people down. You call yourself a consumer advocate, start advocating. People need to get out in the streets and protest the way our government is being run and the way our government allows the financial industry to run our country. We are smack dab in the middle of a facist state at this time. The corporations are running our country and the politicians are bowing to them all. Clark, you could be our country's Joan of Arc. You could lead our country out of these dark ages. You would be our Clark de Arc! We need someone with credibility to help us fight back and you are the one Clark. Stand up with us. Revolution Clark, that is the only way I can see out of this facist state. Both the Republicans and Democrats are bought and paid for by these companies. We need someone outside of that club. That is you Clark. Please help us see the way to a better country where the PEOPLE control their government and the financial industry and not the other way around. Thanks Clark. I know we can depend on you to figure a way. Otherwise WE THE PEOPLE are null and void. When a country is 50/50 split or close to that number, we have no way of forming a consensus and they know it. As long as they can keep us fighting over "right and left" we don't see them cheating us around the corner. Where are the free elections and where is that free market? It is all a bad joke on all of us. "UNITED States"? Where is that now?
By Jim Ingersoll @ 06/22/09 12:40:01 PMreport abuse
mafia style lending
let's face it. every credit card company takes advantage of people by getting them addicted to low interest loans and then raises them.
They all charge outrageous fees for cash advances, late payments or over limit charges. They all do.
But, and I say but, you don't have to put yourself in that position. In the 40 years I have used credit cards, I doubt I have paid $100 total in interest to them. And zero fees of any kind. And I have raked in thousands in cash rebates, airline tickets, etc.
I have had a capital one card for at least 8 years now without a single problem. The main advantage of capital one is for spending outside the US or in foreign currency. Zero foreign transaction fees. Most cards charge 2-4%.
If anyone thinks credit card companies will suddenly change their ways, they are crazy. People will continue to borrow like crazy and the card companies will let them, maybe at a slightly lower level though. People will continue to be late, allow themselves (in writing) to go over the limit and pay rediculous cash advance fees. The one thing the government can't do is stop short sighted, instant gratification people from doing stupid things.
By brian @ 06/01/09 11:08:18 AMreport abuse
Captial one
They are the WORSE credit card company.. DROP them and go with CHASE
By stephen @ 05/31/09 10:07:47 PMreport abuse
CREDIT CARDS
WE HAVE BEEN WITH CAPITAL ONE FOR 12+ YEARS .NEVER BEEN LATE ALWAYS PAID AS SOON AS GOT THE BILL,NEVER EVEN CHARGED 1/2 LIMIT ,NEVER OVERLIMIT. AND FOR BEING SO RESPONSABLE AND HAVING A 7.9 RATE FOR ALL THESE YEARS ,IN APRIL 2009 IT WENT TO 17.9...WHATS WRONG WITH C.C. COMPANIES ? AND THIS IS ONE OF THE LARGEST
By DEBBIE COLLINS @ 05/31/09 07:54:19 PMreport abuse
Hi
I am a buyer of stocks; this hysteria makes me dig in my heels more and buy more stocks. I drool at the possibility of profiting off of irrational fear. Lets hope that we continue to go up and that these "fears" will be ignored.

There are multiple ways to invest in stocks, but I believe a carefully thought out plan or investment in index funds are essential to stock market success. It is important to reevaluate quarterly.
By Nathan @ 05/31/09 10:00:51 AMreport abuse
Credit Card Reform
I apologize for my last statement. President Bush was a great president. Obama is just another stupid Democrat and he will bring this country to a financial crisis in the next couple of years. He already started it with his absurd "stimulus" package. We all know this package is just a payback to all of his cronies that got him voted into office. Nothing in the package aids the general public. It punishes those who made good decisions and rewards those who made bad ones. Stupid Democratic thinking. I was dumb to make the last comments I did. Thank you for your forgiveness America.
By General Public. @ 05/31/09 07:29:46 AMreport abuse
Credit Card Reform
With the economy on life support, any change is good. I applaud Obama for trying. That is more than Mr. "Let-them-eat-cake" Bush ever did. And let's not forget along with this credit card reform came the first pro-gun law in decades. It took a Democrat to do that too. I'll bet all those brain-washed rednecks are just at a loss for words.
By General Public @ 05/30/09 07:13:08 PMreport abuse
Good News
I called to check the balance on my Regions Bank account and I heard a message that my account is being transferred a Credit Union. How odd is that?
By Sven @ 05/28/09 08:49:24 PMreport abuse
Business Card Services Closes
Advanta business credit cards just sent out notices that all credit card holders accounts are being cancelled. Balances can still be paid off with normal proceedures but no additional charges will be honored after May 30th. Ouch!
By George @ 05/28/09 07:31:27 PMreport abuse
Penalizing responsible credit-card holders?!
Appreciate the reassurance that credit-cards will not be wiped out by the corrective measures recently signed into law. BUT . . . what about all the talk of banks now focusing their scheming, sleazy tactics on responsible c-c customers who are never late and who pay the balance every month? Are banks going to be allowed to impose fees or otherwise penalize these responsible folks? Such penalties seem unconscionable.
By jms @ 05/28/09 04:14:44 PMreport abuse
Fewer credit cards. A blessing
Yes, less spending is better for our economy. Fewer BKs. Only buy what we can afford.
By Kveg @ 05/28/09 12:35:50 PMreport abuse
Credit Cards
I'm all for a change. I pay for everything by credit card. If I had to pay cash I would think twice before I spend. I never have money except for coins in my pocket.So lets go back to a $300 limit on credit cards and you would see such a big change in the economy. Prices would fall. The economy would collasp big time.
By James @ 05/28/09 10:46:35 AMreport abuse

10 yr old credit card

Bank of America got in contact with my son regarding an unpaid credit card that is 10 years old, they want him to pay the balance of 5000. plus 10,000. back interest, what can he do. he is working 70 hours a week and can hardly get by. the only bank account he has ever had was also with Bank of America. they could have gotten intouch with him at any time. the lawyer that called him said the file has been on his desk since 2004 and they are just now calling him about it.

By wanda kitchen @ 10/22/09 08:56:08 PMreport abuse

Thanks for post. It’s really informative stuff.
I really like to read.Hope to learn a lot and have a nice experience here! my best regards guys!
Credit card offers--Credit card offers

By roxyrohit @ 08/31/09 03:13:58 PMreport abuse

credit union switching terms midstream.

My federal credit union(Sikorsky) is using this legislation to change the terms on ALL it's visa cards to a variable rate; prime plus 6.5%, even on outstanding balances. When I asked why they sited the "new legislation" and that ALL credit cards are going to be variab;e. When I Specifically what part of the legislation required variable rates, it was absolute silence. Are all credit cards going to be variable in the future. Doesn't seem like banks are doing what they were supposed to do with the bailout money whatsoever.

By Frank @ 08/13/09 05:35:43 AMreport abuse

Add another company to the list

Bank America is doing a similar thing by raising its fees. And one day while I was talking to them about a cash advance the woman on the other end decided then and there to drastically lower the credit limit on both of my credit accounts. A follow-up letter was mailed to me from them, but even so I hardly had time to change my automatic debits from their card when I started receiving over the limit fees. There oughta be a law!

By By Charles @ 07/22/09 12:43:31 AMreport abuse

ALL CREDIT CARD COMPANIES ARE THE SAME

After giving my pleas to Clark to lead the people in a revolution I read some of the other comments in this column and realized that there are some really uninformed people in this country. All credit card companies are doing the same thing. Chase and Capital One included. We have had a Capital One card for over twenty years and they just informed us that our rate was going from 7% to 17%. Chase did it just the week before. The people that have those cards will be getting their notices soon if they have not already. Now let's see how wonderful you think you card company is...

By Jim Ingersoll @ 06/22/09 12:48:03 PMreport abuse

Credit Cards and Credit card banks

It is time for a revolution in this country and it is up to you Clark to begin this revolution. There has to be a way that WE THE PEOPLE can bring these banks and credit card companies to their knees. They need to be begging for business and not demanding more profits through raising rates. Is there not one way THE PEOPLE can make this happen? Clark we need your help. Why are we so weak as a country against this type of terrorism? That is exactly what the banks are doing. They are taking our treasury and using it and penalizing those of us that are creating the treasury. What is up with that Clark? You need to organize and lead the people Clark. Please help us. Those of us with good credit histories are being penalized because these companies decided to give dogs, cats, children and even dead people credit cards. The CEOs of these companies are making millions and yet penalizing those that are paying their bills on time and keeping their credit in good shape. Where is the "free market" when you have banks uniting on rates and gas distributors uniting on price of gas. There is no "free market". It is all smoke and mirrors. Clark it is time for you to step up for the little guy and help us put these people down. You call yourself a consumer advocate, start advocating. People need to get out in the streets and protest the way our government is being run and the way our government allows the financial industry to run our country. We are smack dab in the middle of a facist state at this time. The corporations are running our country and the politicians are bowing to them all. Clark, you could be our country's Joan of Arc. You could lead our country out of these dark ages. You would be our Clark de Arc! We need someone with credibility to help us fight back and you are the one Clark. Stand up with us. Revolution Clark, that is the only way I can see out of this facist state. Both the Republicans and Democrats are bought and paid for by these companies. We need someone outside of that club. That is you Clark. Please help us see the way to a better country where the PEOPLE control their government and the financial industry and not the other way around. Thanks Clark. I know we can depend on you to figure a way. Otherwise WE THE PEOPLE are null and void. When a country is 50/50 split or close to that number, we have no way of forming a consensus and they know it. As long as they can keep us fighting over "right and left" we don't see them cheating us around the corner. Where are the free elections and where is that free market? It is all a bad joke on all of us. "UNITED States"? Where is that now?

By Jim Ingersoll @ 06/22/09 12:40:01 PMreport abuse

mafia style lending

let's face it. every credit card company takes advantage of people by getting them addicted to low interest loans and then raises them.
They all charge outrageous fees for cash advances, late payments or over limit charges. They all do.
But, and I say but, you don't have to put yourself in that position. In the 40 years I have used credit cards, I doubt I have paid $100 total in interest to them. And zero fees of any kind. And I have raked in thousands in cash rebates, airline tickets, etc.
I have had a capital one card for at least 8 years now without a single problem. The main advantage of capital one is for spending outside the US or in foreign currency. Zero foreign transaction fees. Most cards charge 2-4%.
If anyone thinks credit card companies will suddenly change their ways, they are crazy. People will continue to borrow like crazy and the card companies will let them, maybe at a slightly lower level though. People will continue to be late, allow themselves (in writing) to go over the limit and pay rediculous cash advance fees. The one thing the government can't do is stop short sighted, instant gratification people from doing stupid things.

By brian @ 06/01/09 11:08:18 AMreport abuse

Captial one

They are the WORSE credit card company.. DROP them and go with CHASE

By stephen @ 05/31/09 10:07:47 PMreport abuse

CREDIT CARDS

WE HAVE BEEN WITH CAPITAL ONE FOR 12+ YEARS .NEVER BEEN LATE ALWAYS PAID AS SOON AS GOT THE BILL,NEVER EVEN CHARGED 1/2 LIMIT ,NEVER OVERLIMIT. AND FOR BEING SO RESPONSABLE AND HAVING A 7.9 RATE FOR ALL THESE YEARS ,IN APRIL 2009 IT WENT TO 17.9...WHATS WRONG WITH C.C. COMPANIES ? AND THIS IS ONE OF THE LARGEST

By DEBBIE COLLINS @ 05/31/09 07:54:19 PMreport abuse

I am a buyer of stocks; this hysteria makes me dig in my heels more and buy more stocks. I drool at the possibility of profiting off of irrational fear. Lets hope that we continue to go up and that these "fears" will be ignored.

There are multiple ways to invest in stocks, but I believe a carefully thought out plan or investment in index funds are essential to stock market success. It is important to reevaluate quarterly.

By Nathan @ 05/31/09 10:00:51 AMreport abuse

Credit Card Reform

I apologize for my last statement. President Bush was a great president. Obama is just another stupid Democrat and he will bring this country to a financial crisis in the next couple of years. He already started it with his absurd "stimulus" package. We all know this package is just a payback to all of his cronies that got him voted into office. Nothing in the package aids the general public. It punishes those who made good decisions and rewards those who made bad ones. Stupid Democratic thinking. I was dumb to make the last comments I did. Thank you for your forgiveness America.

By General Public. @ 05/31/09 07:29:46 AMreport abuse

With the economy on life support, any change is good. I applaud Obama for trying. That is more than Mr. "Let-them-eat-cake" Bush ever did. And let's not forget along with this credit card reform came the first pro-gun law in decades. It took a Democrat to do that too. I'll bet all those brain-washed rednecks are just at a loss for words.

By General Public @ 05/30/09 07:13:08 PMreport abuse

Good News

I called to check the balance on my Regions Bank account and I heard a message that my account is being transferred a Credit Union. How odd is that?

By Sven @ 05/28/09 08:49:24 PMreport abuse

Business Card Services Closes

Advanta business credit cards just sent out notices that all credit card holders accounts are being cancelled. Balances can still be paid off with normal proceedures but no additional charges will be honored after May 30th. Ouch!

By George @ 05/28/09 07:31:27 PMreport abuse

Penalizing responsible credit-card holders?!

Appreciate the reassurance that credit-cards will not be wiped out by the corrective measures recently signed into law. BUT . . . what about all the talk of banks now focusing their scheming, sleazy tactics on responsible c-c customers who are never late and who pay the balance every month? Are banks going to be allowed to impose fees or otherwise penalize these responsible folks? Such penalties seem unconscionable.

By jms @ 05/28/09 04:14:44 PMreport abuse

Fewer credit cards. A blessing

Yes, less spending is better for our economy. Fewer BKs. Only buy what we can afford.

By Kveg @ 05/28/09 12:35:50 PMreport abuse

Credit Cards

I'm all for a change. I pay for everything by credit card. If I had to pay cash I would think twice before I spend. I never have money except for coins in my pocket.So lets go back to a $300 limit on credit cards and you would see such a big change in the economy. Prices would fall. The economy would collasp big time.

By James @ 05/28/09 10:46:35 AMreport abuse

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May 27, 2009 -- Clark calms the hysteria surrounding the new credit card rules

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