We see you, Uncle Sam

Don't get it twisted, Uncle Sam. The People of the United States are watching You!

We check back in a few months after a previous blog post on the Credit Accountability, Responsibility & Disclosure Act of 2009. Is Uncle Same keeping his promise of protecting credit card holders? We survey news items obtained from Google on what's current in the personal credit card markets.


1. Early in June, credit card issuers were already cutting up, finding ways to circumvent the new legislation. Violators have been charging new customers processing fees of up to $95 before the card is even used. Fail. Others increased interest rates before the Act took hold and offer a partial rebate (in the future of course) at the lender's discretion. The net result is the same as rasing rates. Epic Fail.

2. July told much of the same story. An associate economist the the Federal Reserve Bank of Chicago is quoted in the Wall Street Journal saying "Card companies are figuring out how to replace old fees with new ones....It's a race between regulators writing ever-more-complex laws and credit-card companies setting up ever-more-complex fees." While the fee increases are legal, they were starting to get out of control. A coalition of consumer rights groups sent a letter on July 7 to the Office of the Comptroller of the Currency name-dropped several offenders. Banks can't charge interest or fees on days payments can't be processed - Sundays and holidays - but stand firm that they still "accept"payments on these days. Doublespeak.

How to fight back amid the minefield of self-interest card companies? First, if you use credit at all, pay your bills on time. Makes raising sand when and if your card company unlawfully raises your interest rate or shortens your billing cycle much more palatable.

Second, continue to education yourself on credit card legislation. You can read the 33-page Credit card Act here (PDF). Get a credit report and always, read the small print. It's in plain language and right in front of your face...by law!

We like this chart, obtained from the WSJ online, with data obtained from the Pew Charitable Trusts, the National Consumer Law Center and the Center for Responsible Lending. It summarizes some of the less scrupulous practices currently being reported: