Tighter credit card restrictions are expected in six months, but companies are already making changes. They are changes you are often alerted to in fine print at the end of your monthly billing statement. So, make sure you read the fine print and scour your bill for rule changes that could impact your wallet.
Some of the changes will benefit consumers. Discover and American Express plan to stop charging fees when consumers go over their limits. Card issuers are expected to earn close to four billion dollars on those fees this year. The new credit card law will tighten the restrictions on those fees.
Consumers are also complaining about spikes in interest rates before the new law take effect. Muffin Jones says she has never been late on her bill, but her interest rates spiked. "One has been raised up to 22% or more, and they put you under a lot of stipulations to get it lowered. Jones says she had to pay off her credit card to lock in a lower rate.
If you get a rate increase, you have the option of declining the rate increase. Although, that typically means your card will be canceled. You can still try to call and reason with the card issuer. Tell them you've been a good customer, and that you will leave if they don't do something to keep your business. The best advice is to keep your cool and don't be over-demanding or you may end up with nothing.
The new law will restrict rate hikes unless you have a variable rate. So, watch to make sure your card is not switched to a variable rate before the law starts. Otherwise, you are not being protected by your credit card is protected.
There are also reports that companies are raising rates based on where you charge. Credit card companies analyze your purchases, and some even give you a printout at the end of the year to show you how much you charged for groceries and on clothes. Robert Manning wrote "Credit Card Nation." He says there are some things you should never charge on plastic including traffic tickets, cash advances, lottery tickets, and repeated liquor purchases.
Also, if you have become a thrifty shopper in this shaky economy you may want to stay away from swiping plastic. Some credit card companies grow concerned if the consumer suddenly shops a lot of discount or dollar stores. Manning says it may show the credit card company that you're in financial trouble.
Credit card companies are also changing the terms of your card. I recently got a notice about losing my points if I don't make a payment on time. If the minimum amount due is not credited to your account, the points that posted that billing period are gone. You can get those points back, but it will cost you $29 per billing period of reinstated points.
Are you having problems with your credit card? Let me know. Sound off at
strathman@nbcactionnews.com or follow me on Twitter --
www.twitter.com/kshbconsumer
