Reform has saved consumers from increased debt, Pew study finds
According to a new report from Pew Charitable Trusts, many of the practices from credit card companies that the Federal Reserve Board called unfair and deceptive have been eliminated. Penalty fees that are enacted without warning for minor account violations, unfair payment allocation and raising interest rates on existing balances are all now a thing of the past.
However, Pew said, credit card lenders are exploiting loopholes in the Credit CARD Act to make up the lost money. Recent months have seen increased fees on cash advances and high penalty rates that are not mentioned in any online literature from their issuer.
A Newsweek report said that while APR increases have been slow this year, credit card companies made sure to boost rates prior to the new regulations taking effect as a way to lock in maximized profits.