"We are seeing lenders make good on threats to raise the cost of credit if a new credit card law passed," said Ruth Susswein of Consumer Action.
The changes consumers are grousing about now are permitted under current law. For example, companies can offer fixed rates but if you read the tiny print on the back of your statements, you will see they reserve the right to snatch back that rate.
I was rather hard on the cardholders in that room. When I gave their cards back, I told them they shouldn't use them again if they don't bother to study even a few of the reforms that directly impact the plastic they rely on. I challenged them to find out what the rule changes were, or put those cards away until they do.
So what about you?
Can you name three changes under the CARD Act? How about two, or even one change concerning the use of your credit cards?
Or does it even matter to you?
After all, in the past, no matter what the card companies did to us -- moving the due dates; allowing people to spend over their limits, resulting in penalty fees; jacking up interest rates for no good reason -- we still played their credit card game. We complained. Perhaps you may have even canceled a particular card but then signed up with another issuer playing under the same rules.
The CARD Act will make the game a little fairer. But how will you know if the card company is abiding by the new law if you don't know what the law is?
There is something you can do: Choose to be informed.
Under the new rules, credit card issuers can't be so arbitrary about changing terms. If you want to know the provisions that will go into effect, go to consumer-action.org. In the search field, type in "New credit card provisions."
After you study the provisions, then accept the inevitable -- that the companies will probably still try to find new ways to abuse cardholders. And we'll likely still play with them.