In February 2010 a an act went through Congress that created a new set of rules to govern credit cards. The reason for this act was to protect people who used credit cards.
The problem was with the fine print that was attached with the agreement people signed when getting a credit card. The biggest problem was usually with the credit cards APR, or annual percentage rate. Often when someone signed up for a credit card they were given a certain rate, and in time this rate would go up. They were usually unaware that this was happening.
The goal of the banks before the legislation was to make the consumers think they were making a good decision by signing up for a credit card. They used gimmicks such as free flights, cash back, and bonuses. And as the consumer went about thinking the credit card was saving them money and making life more convenient, the banks were using every trick they could to get money from the individual.
There were a handful of ways banks used their tricks to get money from consumers, like double cycle billing, which made the consumer pay interest on things they had already paid off. Another big scam the credit card companies used was the fixed rate credit card, which promised a fixed rate, but actually only gave that rate to certain items, leaving other items at a rate the consumer was not aware of.
What the government found in their investigations was that this problem was not localized to a handful of card companies, but was basically industry-wide. The legislation passed was needed to completely change the way the credit card industry operated. To make the industry move closer to offering consumers some sort of benefit rather than trying to find any way they could to take money from them.
The industry still has a ways to go for complete reform. And when one door is closed usually large corporations will find another door. But for now consumers can breathe a little easier knowing that the government is keeping an eye on the credit card banks, and with the best interest of the consumer in mind.
Know that you know about the new rules the government has enacted for your credit card it might be time to think about credit card consolidation at CreditCardConsoldation.com.
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