Credit Card companies try to delay lower Credit Card interest rates from apply to consumers.
You know that ‘groundhog’ game you play at amusement parks, where you hit the ground on the head to smash it down, and, instantly, another one pops up? This reminds me of this latest scheme by the slimy credit card companies.
In an effort to protect consumers, the federal government pass the Credit Card Act of 2009. One of the major features is a 45 day wait before companies can apply a change in someone’s credit card rate (effective Aug 20th, 2009). Cool, right? The idea is to allow time for consumers to shop around for a better credit card offer.
Well, the credit card companies are using this same rule to wait 45 days to apply any interest rate DECREASES (This is NOT what the feds intended).
So, the government just barely fixed (Jan 12th, 2010) this so that these interest rate reductions will be immediate and the interest rate increases will have to wait.
This reminds me again that credit card companies don’t have any of the consumers’ interests in mind. It’s all about taking as much money from the consumer as possible.
The worse your credit, the more they will try to take from you. These interest rate increases usually happen after your first or second late payment. This is tactic developed within the last couple years. Sometimes these interest rate hikes are astronomically high.
This is yet another reason to clean your credit and incorporate healthy credit habits.
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