| |
|
|
|
|
| Home
>
Personal Finance
>
Topics: Credit Cards |
|
| ----------------------------------------- |
|
| Credit Card Rate Hikes May Be Coming Soon |
Submitted by:
Ray @ Tip Hero 10/08/2009 3:50 AM
|
| |
Keep a close eye on your credit card statements over the next couple of weeks as some card companies plan to raise rates ahead of new federal rules that place limits on rate increases. Just yesterday, Wells Fargo announced they are raising rates on a majority of their credit card customers by three percentage points. The changes are scheduled to go into effect the week of November 30th. Many card companies are planning to raise rates before February 22, 2010, when legislation in the Credit Card Act of 2009 goes into effect.
Signed into legislation on May 22, the Credit Card Act of 2009 places limits on when credit card companies can raise interest rates and bans universal default (which is the practice of increasing card users' interest rates based on their payment records with unrelated accounts, such as utilities or other credit card accounts). It also bans retroactive interest rate hikes on existing balances -- with a few exceptions, such as teaser rate offers.
Many consumer advocacy groups have been afraid that card companies will try to raise rates before they are hemmed in by the new legislation. The new rules are scheduled to go into effect February 22, 2010, but Congress is considering moving the date up to December 1st of this year. Hence, we could see many card companies try to increase rates over the next several weeks.
Make sure to keep a close eye on your statements over the next few billing cycles. If your interest rate does get raised, you may want to consider shopping for a new card with a lower rate.
Find More Compare Credit Cards & 0% APR Credit Cards |
|
---
sponsored: Find Money Budgeting Tips.
|
|
---
Tip Hero serves up new money-saving tips daily.
Get free updates via Email , RSS or Twitter.
|
| |
|
|
| |
|
|
| |
| |
|
|
| |
|
|
|
|
