Extra 2000 dollars? Don't you have to pay back credit card debt?

>>211416
Yeah, but there used to be a lot of these offers where you could get a "balance transfer" at 0 percent APR for 12 months. They are meant so that you pay off your old cards or loans and transfer the balance to them. They hope that people forget about them or miss a payment so they can jack up the rate and cackle evilly.

Except they give you a check to do this. A check which you can deposit into a savings account or even a CD and earn interest on for a year with zero risk.

INTEREST RATES

THEN: Banks could raise the interest rate on an account at any time, including the rate on an existing balances, even if you weren't late on payments.

NOW: The rate cannot be raised in the first year after an account is opened unless an introductory rate has come to an end. After that, cardholders must be notified 45 days in advance of any rate change.

For existing balances, rates can't be raised unless the account is at least 60 days past due. If payments are made on time for six consecutive months, the original rate must be restored.
Story continues below

There's still no cap on rates.

DISCLOSURES

THEN: The fine print on cardholder agreements was often difficult to understand. Rates, fees and penalties for other services such as cash advances, for example, could be hard to find. The impact of the interest rate on paying down a balance was hard to compute.

NOW: Cardholders will see how many months it will take to pay off a balance if only minimum payments are made. Statements will also indicate how much needs to be paid each month to pay off a balance within three years.

SERVICE FEES

THEN: Banks could charge as much as they wanted. They could assess annual fees, activation fees and other fees. This was mostly a problem for subprime cards marketed to those with poor credit scores. One popular card, for example, the Premier Bankcard, charged $256 in first-year fees for a $250 credit line.

NOW: Service fees, such as activation and annual fees, will be capped at 25 percent of the credit limit during the first year of use. After that, there is no cap.

GRACE PERIODS

THEN: Some card companies sent out statements not long before payments were due, and sometimes shifted payment due dates from month to month, meaning that payments would not always have enough time to arrive and get processed before being deemed late. As a result, some cardholders ended up getting charged interest or late fees even when they thought they were sending in payments on time.

NOW: The law requires that due dates remain consistent. Statements must be sent out 21 days before the payment due date, and finance charges and fees cannot be applied before that period is up. In practice, about half of card issuers have extended grace periods to as long as 25 days.

OVER-THE-LIMIT FEES

THEN: Banks set credit limits, then routinely allowed charges to exceed those limits. When that happened, though, the customer was charged an over-the-limit fee as high as $39. These fees were often triggered by interest charges or late-payment fees that pushed a balance over the credit limit. What's more, multiple over-the-limit fees could get charged in a single billing cycle if the balance was paid down and another charge pushed the balance back over the limit.

NOW: The cardholder must specifically agree to permit transactions that exceed the credit limit. Only then can over-the-limit fees be charged. But the fees can't be triggered by other fees or interest charges. Only one over-the-limit fee may be imposed during a billing cycle. No over-the-limit fees may be charged unless the cardholder has specifically agreed to permit transactions exceeding their authorized credit limit. These fees can no longer be triggered by other fees or interest charges imposed by the card issuer, and only one such fee may be imposed during a billing cycle.

In practice, several of the largest card companies have dropped these fees. Some banks are using pop-up boxes on their Web sites or other methods to obtain consumer authorization.

UNIVERSAL DEFAULT

THEN: If you made a late payment on one credit card or loan, or even late payments for obligations like utility bills, that could trigger interest rate hikes on other credit card accounts.

NOW: Card companies cannot raise interest rates on existing credit card balances. Interest rates can't rise during the first year an account is open, unless the original agreement spelled out a promotional rate for a limited time.

Consumers with older accounts must be informed of any interest rate increase on new charges at least 45 days in advance. They must also be given a chance to opt out of the hike by canceling the account and paying down the balance at the old interest rate. If an interest rate is increased, the card company must review the account once every six months to assess whether the rate should be dropped.

STUDENTS

THEN: Students arriving on college campuses often confronted a gantlet of credit card marketers handing out T-shirts, pizza and other gifts in exchange for filling out card applications. Credit cards were frequently handed out without checking the applicant's income sources. In 2008, 84 percent of undergraduates had at least one credit card. Average balances topped $3,100.

NOW: Credit cards may no longer be issued to anyone under age 21, unless the applicant has a co-signer, or can show independent means to repay the debt. Colleges must disclose any marketing deals they make with credit card companies. Banks are not allowed to hand out gifts on or near campuses or at college-related events.

>>211390

Pretty easy way to make money. Smart anon is smart.

I will miss giving credit card to anyone under 21. I don't know how a person is supposed to build their credit if they don't have parents and are under 21. I got one at 15 because I knew that I need good credit.

Also lol at the idiots signing up for credit cards for a free t-shirt. Well, maybe people can be stupid some other way.

>>211482
>>211469
>>211466
More of progressives ruining America amirite?

In all seriousness, this is awesome.

>>211489

Your country sucks. Here a you can get a good credit rating based on your banking history, without ever having a credit card. In fact, it would be a big no-no to be already on the credit teat prior to being a legal adult.

Except there's no cap on interest rates, so credit card companies just jacked up the rates sky-high before these new rules kicked in.

gg lobbyists

>>211489
Eh, not like I came up with it, got it off the Fatwallet finance forums.

Honestly I think most of these regulations are probably a good idea because so many people can't handle credit cards, but I'm still a little sad that all the benefits that I was enjoying because I have OCD are going to go away.

I'm also not a big fan of the restrictions on the under 21s, because I think that assuming ALL under-21s can't handle a credit card on their own is stupid. I mean, you have to register for the draft when you are 18. To butcher an old song, "Old enough to kill, but not for loanin'?"

>>211512
Yeah, Citi is randomly levying annual fees on people's cards too. Its pretty lol.

>>211542
They'll let you register for a credit card on an army base.

>>211542

Ah, just one more thing that the government doesn't think I can handle myself. I guess I need to wear a helmet and a neon vest before long.

This angers me. It diminishes the 4 years of responsibility and perfect credit I've been building since I was 18 and rewards Jamal who bought $15k worth of car stereo equipment the second AMEX aproved his blue card account.

Fuck you liberals.

>>211584
I kinda doubt that AMEX would send an application to someone who was named "Jamal".

>>211611
You get the point. All the retards I knew through college who spent their way into thousands of dollars in debt buying shit they didn't need are getting a break while I'm here with nothing to show for years of discipline and restraint.

>>211629
Well, if the economic recession ever ends at least you'll be able to get a mortgage. Unless they outlaw credit scores or something, which I'm sure will come next.

>>211629
...how does this ruin you?

>>211629

>nothing to show for it
>a good credit score

Derp.

Good: Companies will have a harder time preying on stupid young people.

Bad: Everything else forces credit card companies to find new ways to fuck you in the ass, when before they were simply charging people for being careless.

>>211503

>Here a you can get a good credit rating based on your banking history, without ever having a credit card. In fact, it would be a big no-no to be already on the credit teat prior to being a legal adult.


Yeah what's the deal with country that you need a god damn credit card to get a good credit rating. That's just making people use the damn things. I'm one of those ones that don't and never ever will use one of those damn things.

>>211653
>>211656
Because now credit card companies will most likely stop offering rewards programs or at the very least restructure them in such a way that it is very difficult to get, say a gift card. On top of it, all of the money that they're losing from interest hikes and over limit fees will now be passed on to me. My APR itself may increase. 0 APR offers may become nonexistent altogether, and as other anon's mentioned in this thread aors were always a nice form of supplementary income.

>>211720

They'll stop giving out points rewards, sure. But why wouldn't you see an emergence of score-based rewards? Maintain above X credit score for Y months, gibe free iPod

>>211702

I hear people bitching about government all the time, but when you know companies are poised to rape the customers, crickets. Why?

>>211656

In Australia land, his lack of credit would be a bonus, if he could show a healthy bank account, or healthy rental history.

That is, of course, if you go with a reputable bank, like the commonwealth bank. If you go to "Shylocks Quick N Easy" he's going to see someone who pays back loans at a quicker rate, making the interest lower, and think "fuck you, I'm a greedy kike"

>>211745

>talking about American legislature and effect on American citizens
>bring up Austrailia

What?

>>211734

Because the government is an easier target, and many of the dissenters would rather get fucked over by the companies than give up what said companies provides.

>>211758

You don't live in an enclosed pen. Lateral thinking would encourage you to look outside of your immediate location for answers to problems.

This might explain why America is in a recession.

>>211731
Eh, that wouldn't really work that well because your credit score gets dinged for a year every time someone besides you pulls your report. Not really sure why.

>>211734
Well its mostly a self inflicted mess; nobody forced them to take that credit card with the 250 dollar credit limit and 200 dollars in fees.

Honestly instead of this act I think it would have been better if they banned mailed credit card offers completely. Almost all the good offers you have to apply for anyway.

>>211771

But it ceases to be a credit score and then it's just a banking statement with arbitrary indicators of "this is good" and "this is bad."

>>211745
That sort of thing does help you in America as well; almost no companies just take a look at your score alone for a big loan like a mortgage.

>>211734
Because the big bad credit card companies weren't doing anything that couldn't be avoided with a little common sense.

People like to demonize these companies like they somehow went out and forced credit cards down people's throats and then forced them to spend more than they could afford and then forced them to make minimum payments.

The only people who ever got fucked over by a credit card company were careless and undisciplined.

I've had a credit card since I was 18. Never got into debt because I had the miraculous ability to understand how much I could afford to spend. Never got raped by finance charges because I paid my bill on time - dude, you wouldn't believe how hard it is to put a letter in the mailbox....

Fuck you cunts who believe everyone's a victim.

>>211804
It's not realistic. Credit scores are only relevant for applications of new credit. Credit companies couldn't care less for your credit score once you're already a customer, and if they do it's only to offer you upgrades to their "gold" cards that often come with an annual fee.

In closing, credit card companies are by and large predatory, but only if you're stupid and irresponsible. If you have a modicum of discipline, credit cards become a tool for future credit applications and points based rewards. Liberals, who also happen to be tools, fail to see this.

>>211833
>put a letter in the mailbox..
Dude what century are you living in? Online bill pay for the win, cheaper because you don't have to pay for postage and quicker too.

>>211804

Yes, but that's still an indication of your ability to repay "credit". Sure, you haven't paid it back before, but the fact that you have shown such a small reliance on credit in the past, would be an indicator that you are able to control your finances and repay your loan.

Even more fucked up is banks who supply credit cards to mariginally employed young people who live with their parents, regardless of wether this indicates an ability to repay, simply because they can take the parents cash instead if they co-sign.

Like I said, reputable banks here will give you a credit card based on a sound banking history, usually a card through the bank you have been with.

Obviously, a person with an extensive credit history is far more attractive to money lenders.

>>211860

People still "pay" bills? All my shit is direct deposit.

>>211883
>implying that isn't a method of repayment.

>>211833
It isn't like credit card companies really have a way to collect on credit card debts anyway; they usually just sell the debt to a collection agency for pennies on the dollar, who then harass you trying to get you to pay it back. If you know your rights you can actually force them to stop calling you on the phone, and often they will even settle your debt for pennies on the dollar themselves if you are able to pay it in a lump sum.

>>211833

Well, I'll be going a little off the reservation here but...

Governments collude with money lenders on matters like this. For instance, they manipulate the cost of land to make it necessary for someone to go into debt just to purchase a place of residence, etc. So in a sense, it's fair to demonise them.

That said, if you ran out and got a credit card to buy a sweet flat screen, an Xbox and, even more fucked up, to pay for your day to day groceries, all while you worked in a supermarket, fuck you and shut up.

>>211860
Exactly. With things like online bill payment there is literally no excuse to make a late payment and incur evil finance fees.

But for people without proper access to the interwebs they can still pay their bill by walking outside and putting a fucking pre-addressed envelope in the mail. It's so easy a child can do it. If you're so unreliable that you fuck this up more than once in a blue moon you deserve to pay a fee at a higher interest rate.

>>211914

The glory of America. In Eurofag land or Ausland, bankruptcy or bad debt will ruin your life.

Back in the old days, the British would even throw you in privately owned debtors jail, whereas in glorious America, you just sold up whatever assets you had left and said "SUCK MY DICK! I'M GONE!"

>>211900

>no, its implying that people can be fucked to literally get up, post a letter or click a mouse monthly.

>>211900

Quotation marks. See them.

I never got a credit card because i never felt the need to put anything on credit, i'd just do things oldschool and save up money. So i have never actually gone through the process of actually paying off debt.

But I see you guys saying it shouldn't be so damn hard to simply mail your pre-addressed envelope every month, but some of this shit seems in fact IMPOSSIBLE to avoid. I mean, wtf, arbitrarily changing the due date for the payment? What happens if you mail your payment on the first when it's due on the seventh, but they change the date to the third or something and you have no idea if the payment will make it there in time?

Bump for largely nonretarded thread which is an endangered species on /new/

Bump again..

People in this thread bitching about the new credit card regulations would similarly bitch if they miraculously cured Cancer.
Because they've never had it and it'll hurt their pharmaceutical stocks.

Also, I hope you Conservatives realize that the Usury employed by our credit card companies is condemned by every civilized society and religion the world over. You do, right?

How does this apply to those prepaid Gift/Debit Cards?

Or how does this apply to those Prepaid Creditcard accounts from GreenDot Financial and such?

I no longer recommend even the Gift/Debit Cards because just their classification exposes me and others to tax liabilities. It's insane that everything in the financial market intentionaly renders everyone into the lowest position of possible claimant to secure or retain value from dissipating.

GOD AND SILVER COIN is the only way. FckTnWo and it's paper currency. Just go for barter system between like devices, minerals, and foods; don't trade unlike to unlike, unless to retain an interest into a venture. Keep it simple. Jews can't get your money if it's not to their accounting, so shoot the next one that tries another confiscation like Roosevelt back in the better day of freedom and liberty.

>>212623
No, we bitch because:
1. There wasn't any real need for this legislation
2. This legislation doesn't not address the real problems (people being irresponsible, and uneducated about money)
3. It will only cause credit card companies to seek out new ways of generating profit from customers, some of which won't be completely avoidable, even for responsible users.

Before Legislation:
Stupid people paying the price for being stupid, while people with an ounce of common sense do just fine.

After Legislation:
Stupid people still doing stupid things, while everyone else gets to deal with whatever new ideas the companies cook up