It's true! Effective July 1, 2010 legislation will pass that will benefit anyone carrying a credit card balance. The ruling restricts raising interest rates on existing balances except in limited circumstances; prevents lenders from applying any payments over the minimum balance due in a way that would maximize interest charges; provides more change in term notifications, clearer disclosure information at the time the card is opened; and at least 21-days for bill payment. Click here to read more about this.
This change presented Rogue Federal with a particularly difficult dilemma. We had already notified our members that we were increasing the interest rates of our current credit cards effective this January. Our credit cards had a variable interest rate and with the dramatic fall in the Prime rate our rates were lower than they had ever been. So, what do we do? Do we continue with a rate increase as currently allowed by law? Or do we suck it up and do what is the best for the member at the risk of lost income? After considerable deliberation we decided that the right thing was to do what the law called for even if it was not effective for 18 more months.
What did your credit card company do? I have heard stories of companies hurrying to get rate increases in place before the law takes place because they can. Thanks to this new ruling, credit card companies will be more "credit union" like when it comes to doing what’s best for you!
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