UNDERNEWS

Undernews is the online report of the Progressive Review, edited by Sam Smith, who covered Washington during all or part of one quarter of America's presidencies and edited alternative journals since 1964. The Review has been on the web since 1995. See main page for full contents

July 2, 2009

BANKS HIKING FEES & INTEREST RATES TO BEAT NEW LEGISLATION

Washington Post - Credit card companies are raising interest rates and fees seven months before new rules go into effect that will limit their ability to do so, much to the irritation of Congress and consumer advocates.

Chase, for instance, will raise the minimum payment required of some of its customers from 2 percent to 5 percent of the statement balance starting in August. Chase and Discover have increased the maximum fee charged for transferring a balance to the card to 5 percent of the amount, up from 3 and 4 percent, respectively. Bank of America last month raised the transaction fee for balance transfers and cash advances from 3 to 4 percent. Card issuers including Bank of America and Citi also continue to cut limits and hike up rates, which they have been doing with more frequency since January. . .

Yesterday, Sen. Charles E. Schumer (D-N.Y.) once again requested that the Federal Reserve invoke its emergency powers to place a limit on interest rate hikes.

"This is what many of us feared about a law that didn't take effect right away," Schumer said. "It was never going to take this long for the credit card companies to get ready for the new reforms. Instead, issuers are using the delay in the effective date to wring more dollars out of their customers. It is against the spirit of the law, and it is just plain wrong."

1 Comments:

Blogger Alessandro Machi said...

Thanks for highlighting what Chase bank is doing.

Chase Bank believes the over one million disenfranchised and targeted victimes will not rise up and fight them.

Here is my attempt to make a difference, please join me and many others to fight back against Chase Bank.

Daily-Protest.com

BLOGGERSAGAINSTCHASEBANK.com

OVER 1,000 LETTERS FROM UPSET AND FEARFUL CHASE BANK CUSTOMERS AT CONSUMER AFFAIRS DOT ORG.

July 4, 2009 11:57 PM  

Post a Comment

<< Home