New Credit Card Rules

Welcome to the "new world of credit cards"! What's so new? New rules set by the CARD Act which attempts to make the experience of being a credit card user less onerous.

Here's a look at some of the changes that take effect Monday:
- Interest rates can't be raised on existing balances
- Due dates must be the same every month.
- Firms can't charge overlimit fees without your permission.
- No more two-cycle billing.
- Minimum payment disclosures.
- No marketing to college kids.

Here's hoping that these new rules really do improve things for consumers, and are not overwhelmed by unintended consequences.

Deep Question of the Day

This one is not about philosophy, but annoyance. Why is it every time I finally pay off a credit card, I immediately get an e-mail telling me about "more ways to use your credit card" or have my credit limit automatically raised? The credit companies more and more these days act like drug dealers. "Oh, you're trying to get clean? How about one more free sample?"

And I say that as a bank employee. When I pay down my car loan, the bank doesn't try to get me to buy a boat on loan!

Did you know you can OPT OUT of pre-approved Credit Offers?

I am a big fan of the Federal DO-NO-CALL list to keep telemarketers away from your landline. But I was not aware that there is also an Opt Out list for Pre-Approved Credit Cards which could save you thousands of pounds of junk mail every year. As well as the likelihood of becoming a slave to the debt-cycle.

Updated 2:34 PM: Please be aware that this site does ask for your social security number - which causes many people to question its veracity. As indicated by this anti-fraud site, it is legit AND does NOT require you to give the SSN. If you are concerned, just don't give that info.

Be aware, an unactivated credit card CAN be charged

A few of you know that I work for a bank. What you may NOT know is that I often work with the ATM Operations group who manages ATM and Debit Cards. I know that a LOT of their time is spent monitoring cards for unauthorized purchases, and to ensure that fraudulent activity is as difficult as possible (while real activity is as easy as possible for the real consumer). And yet, we still get burned all the time. One big way banks ensure against fraud is by making it hard to activate a card if you are not the person who ordered the card.

Now, however, some banks are weakening the protection of card activation in order to get more money into their own coffers by charging for credit protection services. Be VERY careful if you sign up for a new card that you are not hit by this particular scam which is costing consumers thousands in fees and unintended hits to credit ratings.