Good Legislation Alert: Credit Card Bill of Rights

[LegalSmash]

http://news.yahoo.com/s/ap/20090430/...VzZXBhc3Nlc2M-

I'm happy for this.

[PotshotPolka]

I'm all for this, but isn't this how credit card companies make the majority of their profit? Granted its usually at the expense of the consumer.

[RedOctober]

the credit card companies make their money off of the interest that their customers pay. (granted its there own fault for just paying the minimum payment)

if the consumers just paid off the balance every month they could save themselves a lot of money.

..... Don't but shit you cant afford!

[LegalSmash]

Specifically, I like this legislation because it will hopefully require the companies to state in plain terms the terms and agreements of the cards. I agree, people should buy only what they can afford, and pay off their balance every month, its what I've done religiously since I got a card, however, I will tell you that prior to law school, many of the terms my bank would use would cause me to take pause and it was a mission to understand their cryptic legalese that still stumps some lawyers. I dont have a problem with terms and conditions being stated plainly. Further, credit companies use slide scale interest schemes that begin low and then rise to rates that are downright usurious. Worse of all (red will remember this) is that they often line up all over college campuses, giving away free shit to people in exchange for signing up, telling them there will be no consequence. While it is true, not using the card will incur you no fee, open, unused revolving credit accounts on your credit report HURT your credit score.

This legislation, in my opinion will hopefully alleviate some of the uglier practices such as universal credit defaults, where you don't need to default on your credit card, but ANY ascertainable payment, no matter whether it is related to credit or not, and they will raise rates to the highest rates allowable under law. Interest is how credit card companies make money, I am fine with that. As both a consumer and an attorney, I believe however, that fees should be explained plainly and up front, so no surprises bound out after a contract is signed.

Clarity in contractual terms avoids litigation and problems. Simply stated.

[Red Tampon]

..... Don't but shit you cant afford!

THIS IS AMERICA WE DO WHAT WE WANT!!!!

*then bitch about how unfair it is that we can't spend money we don't have and ask for help from others using even more money we don't have.

[RedOctober]

Specifically, I like this legislation because it will hopefully require the companies to state in plain terms the terms and agreements of the cards. I agree, people should buy only what they can afford, and pay off their balance every month, its what I've done religiously since I got a card, however, I will tell you that prior to law school, many of the terms my bank would use would cause me to take pause and it was a mission to understand their cryptic legalese that still stumps some lawyers. I dont have a problem with terms and conditions being stated plainly. Further, credit companies use slide scale interest schemes that begin low and then rise to rates that are downright usurious. Worse of all (red will remember this) is that they often line up all over college campuses, giving away free shit to people in exchange for signing up, telling them there will be no consequence. While it is true, not using the card will incur you no fee, open, unused revolving credit accounts on your credit report HURT your credit score.

This legislation, in my opinion will hopefully alleviate some of the uglier practices such as universal credit defaults, where you don't need to default on your credit card, but ANY ascertainable payment, no matter whether it is related to credit or not, and they will raise rates to the highest rates allowable under law. Interest is how credit card companies make money, I am fine with that. As both a consumer and an attorney, I believe however, that fees should be explained plainly and up front, so no surprises bound out after a contract is signed.

Clarity in contractual terms avoids litigation and problems. Simply stated.

i know what ur talking about with the credit card companies lining up at the colleges. I cant tell you how many kids were signing shit just to get a free Frisbee or T-Shirt!