H.R.5244
May 12, 2008 12:05 PM (5 months ago) | Overall Score: 5.0 | Replies: 0

Passage of new restrictions will have 3 effects. (1) Cardholders that meet the terms of their credit accounts will be free from "any time for any reason" rate increases. (2) The extension of credit will be limited to subprime borrowers. (3) The terms of balance transfers and introductory rates will be less appealing for consumers, since payments above the minimum payments will be applied more fairly across multiple rate balances. Expect these rates to go up slightly. Consumers will like the rules while lenders will not. Adding a little fairness to the process may be needed. A special note: some card issuers already adhere to internal standards that are quite fair. The fee harvester cards and other abusive products sold by a few lenders are what is most needed to be corrected.