Anti-Predatory Lending Act Backfires!

Posted: November 11, 2010 in Uncategorized
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I was happy to hear our government passed “Financial Reform” until I realized credit card companies are bound and determined to find new ways to circumvent the intention of new laws.  I’ve had a particular credit card for over 20 years through my credit union.  They have always treated me fairly.  I bought into the “member” status as an indication that they actually care about me.  Then I received notification of the effect of the Financial Reform law.  When I called to complain, they blamed the financial reform laws, intended to establish fair practices”, HR 627,  for the following changes to my Visa Gold:

1)     Replaced a fixed rate credit card with a Prime + 8% variable that

2)     Increased my rate

3)     Increased “penalty rates” to 25%, if applicable

4)     Changed enforcement policies to increase minimum payment obligations

I’ve been given the option to refuse this change by closing my account.   When I mentioned that was anti-predatory legislation, an employee explained the legislation backfired because it was past hastily with vague language allowing for these increases.

It is disappointing to realize that even a long-trusted credit union is contributing to the demise of the middle class by enacting policies in direct defiance of the intent of legislation.  It is even more disappointing to realize that after months of debate, Congress passed “consumer protection” legislation with loopholes the size of a truck that are being blamed for increased credit card rates and fees.

At a time when savings accounts earn a fraction of a percent interest, corporate profits increase when the middle class continues to dissolve, government bails out Banks as they evict more and more families, tens of thousands of people die from lack of health insurance and unemployment is expected to continue to rise for the next couple of years, the middle class can not afford legislators that pass “Consumer Protection” acts allowing for further abuses. Contact your “representative government” here.

Do you have an experience with the new legislation?  If so, I’d like to hear it.

 

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Comments
  1. Tom Henry says:

    They passed a law that has a lot of loopholes that credit companies and other sharks that’s in the corner waiting for their prey can manipulate because of hasty passing of law? What a waste of people taxes they are.

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