Credit Card Rate Hike Information

Today, credit card rates are increasing all most at the same rate as we take a breath. Regulators are hard at work investigating the dealings of these companies, however, there are many consumer groups as well as legislators that believe that credit card companies are dealing out unfair percentage rates, and something must be done quickly to save consumers.

 

Two lawmakers, Senator Charles Schumer, and Senate Banking Committee chairman Christopher Dodd recently wrote a letter to the Federal Reserve to ask for an immediate termination of rate increases on existing balances. In their letter, they suggested that prior to the new legislative reform soon to take place on credit card companies that these companies were taking on an aggressive approach and raising rates unexpectedly. The request was denied on May 5.

 

Credit card rate hikes along with tightening lending standards on credit cards has increased over the last few months with 55% of senior loan officers stating they have raised the minimum credit score for individuals to obtain a credit card.

 

The new credit card reform due to take effect in July 2010 is not going to help consumers that are now being hit with unfair percentage rates. Many individuals that pay on time, pay off their credit balances, and have excellent credit scores are seeing a credit card rate hike without any explanation. Many credit card companies are using a universal default interest rate instead of allowing each person to stand on their own merit such as the way in which they pay or their credit rating.