Some creditors look to increase rates before new regulations
Trying to get out of debt has become a concern for many consumers, however, the actions of some credit card companies may be making it harder to do.
According to a report from Louisville, Kentucky NBC affiliate WAVE, many card companies are trying to raise fees and interest rates before new provisions put forward by the federal government take effect.
The full provisions of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act will take next February. As a result, credit card companies will have to inform consumers 45 days in advance of changes in fees or interest rates. Furthermore, credit card companies will need to keep from randomly raising interest rates on credit card debt.
However, some card companies are trying to change fees and interest rates before the Credit CARD Act comes fully into play. Mary Jackey, community outreach director for Consumer Credit Counseling Service of Greater Louisville, told the affiliate that many cardholders are seeing their minimum payments climb to 5 percent.
"It almost doubles their minimum payment," Jackey said.
With regard to interest rates, some consumers have attended protests held recently across the country. The protests were organized by the Metro Industrial Areas Foundation and called for a national 10 percent cap on interest rates, which would include rates on credit card debt.