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Study finds many credit cards would be in violation of new rules
10/28/2009
When it comes to credit card debt, many lenders are still adhering to practices that will soon be eliminated by laws enacted by the government.
A recent study, which was conducted by the Pew Charitable Trusts, examined almost 400 different credit cards which are issued by some of the largest banks and credit unions. The study found that many of the provisions attached to these cards would be in violation of the recently-passed Credit Card Accountability, Responsibility and Disclosure Act.
In fact, all of the cards examined by Pew would be in violation of rules from Credit CARD Act. For example, the study noted that "95 percent of bank cards allowed issuers to apply payments in a manner that the Federal Reserve found likely to cause substantial monetary injury to consumers."
Recently, Connecticut Democratic Senator Chris Dodd presented legislation that would freeze interest rates and fees on credit card debt until rule from the Credit CARD Act are fully in play. Meanwhile, members of the House have contemplated speeding up some of the rules, making their effective date come in December.
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