The Entitlement Society 2
Banksters:
But as a whole, the industry continues to resist important changes – even as key players continue to show why those changes are needed.
Just one example: The Credit Card Act, passed by Congress earlier this year, will soon bar card issuers from raising rates on existing balances under “any time, any reason” clauses or for being a few hours or days late on a payment – a common practice during the last decade.
So what did Citibank recently do to a swath of its customers? It raised their “regular” rate to 29.99 percent, and then promised them a rebate of 10 percentage points each month if they continue to pay on time. In essence, Citibank devised an end run around the new rules.
Citibank isn’t alone. Recent reports by consumer groups, including one last week by the Center for Responsible Lending, have identified a series of similar devices to game the system even before most of the new rules take effect Feb. 22. The card issuers’ clever lawyers have decided that boosting revenue is more important than honoring the spirit of the new law.
December 14, 2009 at 7:40 am
I would seriously like to know why they were given so much time before the rules changed. Didn’t anyone figure they would pull this?
Why is it that a regular housewife can see these things, but the people with the 4 star educations don’t?
December 14, 2009 at 8:29 pm
Usually, rules changes do come with some notice, so companies can change their procedures and educate their staffs. This, of course, assumes that the companies deal in good faith.
Also, the people with 4 star educations are either too trusting or are using their educations to pick your pocket. Take your (pocket) pick.