There has been much rejoicing everywhere as President Barack Obama finally signed the new senate cardholder’s bill of rights. The millions of cardholders who were roused to anger are finally appeased. The anger was brought on by how companies apply credit card scams by creating confusing terms and conditions that seem inaccessible to the common layman. The next question in every one’s mind is: when and how will this new list of rules get implemented?
Unfortunately the answer is a big disappointment. The bill won’t take full effect until February next year 2010. Now this might seem like no big deal, but think of the ramifications and the trend we are now seeing.
Since the bill was being processed, credit card companies have all been increasing their interest rates, lowering credit limits, and generally tightening their belts. Of course this is partly due to the fact that the banking industry needs to secure their lending. In short, they purport that lending cannot continue if they don’t get the same amount of income they used to have. Although it is debatable whether they really have vested interest in the continuance of their good service or of their own personal gain (especially since this so called “good service” has not been seen for a long time).
It seems that lenders have been scrambling to disobey the new rules while they still can. Considering the state of the economy, the timing could not have been worse. Now more than ever, their services is at the utmost importance. Families and businesses need credit for flexibility of transactions since the cash flow is getting thinner and thinner.
Hopefully, the bill will be approved in time. Hopefully, the economy can still handle this one year.