The Credit Card Act has several major rules that credit card companies need to follow. However, are they really being followed now? You would think that the big banks or card companies like a Bank of America or a HSBC credit card would be rushing to follow these rules. But you would be wrong. Although there are a number of banks already complying with some of the Act’s provisions, most of them are not. Also, the most important provisions such as the banning of arbitrary rate increases and new fees are not yet being followed.
Apparently, credit card companies would rather take advantage of this one last free year of getting away with their old dirty tricks. The problem is that the newly approved bill will only take effect next year. This presents a unique problem for many people who are deeply in need of the flexibility credit cards offer.
Within this year, credit cards are already starting to amp up the fees. Everyone (or at least those people with really good credit scores) thought that annual fees are a thing of the past. But the annual fee is making a comeback as more and more credit card offers show that they have annual fees included within the terms and conditions. Apart from the fact that credit card companies are bringing back old fees and increasing interest rates, they are also creating new kinds of fees. And what’s more, it has become harder for those with bad credit scores to apply for a credit card at a time when they need it the most.
People who need Bank of America or HSBC credit card for example, will be surprised to know that these companies are not yet implementing the new Credit Card Act because these are supposedly the more reputable companies. In this economical downturn, a lot of people are surviving by using their credit cards. Now that this last foothold is getting harder to maintain, the situation for these people just got worse. Guess you will have to wait till next year for your HSBC credit card to ban arbitrary rate and fee changes.
