Milk Your Money

Got Money? Milk the most from it…

  • Home
  • About Us
  • Archives
  • Our Network
  • Links
  • Forums

Subscribe via Email

MilkYourMoney.com Comments On Proposed Credit Card Rules

Posted by Frank
August 4, 2008

Stumble it Digg it Add to Mixx! RSS del.icio.us Add to Technorati Favorites Leave a comment

Federal banking regulators (Board of Governors of the Federal Reserve System, the Office of Thrift Supervision, and the National Credit Union Administration) recently proposed rules that would curb abusive credit card practices that we have long been against.  For a detailed summary of all of the proposed rules, click here.  Today, August 4, 2008, was the last day in which the public could provide comments on the proposed regulations, which MYM has done.

For a copy of our letter sent to the Federal banking regulators, click here.  Or click on the image to the left.

Overall, we feel that the proposed rules are long overdue and in general are legitimate in their intentions. While we generally feel the proposals do not go far enough, we applaud the Agencies for taking the first and necessary steps to curb these abusive practices related specifically to credit cards.  MYM proposed amendments to the proposals in the following areas: Allocation of Payments, Applying Rate Increases to Existing Balances, and Firm Offers of Credit.

In addition to the suggested amendments, MYM also suggested that reform be addressed in the following areas that are not currently incorporated into the Fed’s proposal:

  • The number of overlimit fees that may be applied in a single billing cycle should be fairly determined to properly put responsibility on the account holder to stay within their limit, but not overly punish them into unaffordable debt.
  • Finance charges are often applied at the transaction date and not at the posting date when the money is actually financed. Finance charges should not be charged before the money is actually lent to the consumer.
  • Fees charged to a consumers account for non-use of a card should be banned. Credit is something consumers earn and being charged for not using available credit is cruel and irresponsible.
  • Penalty interest rates should be capped at a reasonable rate to both interested parties.
  • A disclosure should be added to each monthly bill that clearly states the amount of time it will take and the cost to the consumer to completely pay off an account when only making the required minimum monthly payments. $

Related articles you might be interested in:
Use Credit Card Rewards Programs to Save for Retirement
Reaction to Proposed Market Bailout
My Credit Card Interest Rate Raised for No Reason
Over 40 Million Credit and Debit Card Numbers Stolen - Now What?
My Credit Card Interest Rate Raised for No Reason

Banking, Borrowing, Budgeting, Credit Cards, Fees, Saving, Scams, credit score, debt, financial literacy



Stumble it Digg it Add to Mixx! RSS del.icio.us Add to Technorati Favorites Leave a comment

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader or email.

Comments
Pingback by Festive Link Love Carnivality #20 | Free From Broke on August 10, 2008 @ 6:50 am

[...] Milk Your Money - Comments on Proposed Credit Card Rules [...]

Leave a comment

(required)

(required)


Search

Archives

  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008
  • March 2008
  • February 2008

Categories

  • Annuities
  • ARS
  • auction rate securities
  • Bailout
  • Banking
  • Borrowing
  • Budgeting
  • Credit Cards
  • credit score
  • debt
  • DIY
  • Economy
  • entertainment
  • Fees
  • financial literacy
  • Frugal Things To Do In…
  • Gas
  • General
  • Getting Started
  • Income Replacement Funds
  • Insurance
  • Investing
  • Lunch
  • Mailbag
  • money
  • Rate Cuts
  • real estate
  • Rebates
  • reverse mortgage
  • Saving
  • Scams
  • Shopping
  • stimulus
  • taxes
  • Uncategorized
  • windfall

Featured in Alltop

PerformancingAds

  • Recent Posts

    • Auto Industry Lowers Prices During Hard Times
    • Thanksgiving Expenses
    • Black Friday Deals
    • No More Pricey Pedicures with PedEgg
    • As Gas Prices Fall, Take the Following Actions
  • Recent Comments

    • Can You Find a Used Car That Lasts 10 Years For $3K-$7K? on Auto Industry Lowers Prices During Hard Times
    • Follow Me on Twitter and the QuickHits | Prime Time Money on No More Pricey Pedicures with PedEgg
    • christmas songs silent night on Markets Tumble, Surpassing Records Set During the Depression
    • Seth on 27 Great Tips for Around the House
    • Frank on Thanksgiving Expenses
    • Susy on Thanksgiving Expenses
    • Laura K on Thanksgiving Expenses
  • Tools

    • Become a Millionaire with the Following Saving Tactics
    • Broker Check
    • Guide to House Hunting
    • Light Bulb Comparisons
    • Loan Repayment Calculator
    • Monthly Budget
    • Mutual Fund Expense Analyzer
    • Savings Calculator
  • Most Popular Posts

    • 27 Great Tips for Around the House
    • Why Didn’t I Receive My Economic Stimulus Check?
    • Become a Millionaire in 30 Years with your Current Salary
    • The 8 Worst Habits for Saving Money
    • Five Common Money Mistakes to Avoid
    • Frugal Things To Do In Washington, DC
    • Analysis of The 11 Principles by Money Crashers
  • Tags

    401(k) ARMs Banking bills Borrowing budget Budgeting cars common sense compound interest credit credit card debt Credit Cards credit score debt DIY expenses Fed Fees financial literacy frugal Gas General groceries income Insurance interest rates Investing IRA money mortgage real estate rebate recession retirement Saving savings scam Scams Shopping stimulus stocks student loans taxes windfall





Copyright 2008 | Milk Your Money | All rights reserved

  • Home
  • About Us
  • Archives
  • Forums
  • Our Network
  • Links


A World of Personal Finance Bloggers Personal  Blogs - Blog Catalog Blog Directory Add to Technorati Favorites Top Finance blogs Join My Community at MyBloglog!

PerformancingAds


Affiliate Rank & Review
Advertise Here