New Jersey CFO

Credit card firms try end run around new federal rules

Banks are quietly changing the terms of millions of credit card accounts as they brace for a tough new law that will limit rate hikes.

The law would restrict interest rate increases unless a credit card has a variable rate. So at least two major lenders are switching their cards with fixed rates to — you guessed it — variable rates.

“It’s completely unfair,” said Linda Sherry, a spokeswoman for Consumer Action. “It’s an end run around the intent of the new law.”

That law is the Credit Card Accountability, Responsibility and Disclosure Act, which President Obama affixed with his signature in May. Its various provisions will be phased in between next month and February.

Congress passed the law to curb what politicians called abuses of cardholders by lenders, including runaway interest rates and constantly changing terms.

Credit Card Firms Try End Run Around New Federal Rules – LA Times

Add comment July 10th, 2009

One-Third of Americans Say They Have Decreased Their Debt

PRINCETON, NJ — In a new Gallup Poll, 44% of all Americans say they intend to reduce their overall debt over the next six months, with 60% of upper-income consumers planning to do so, compared to 50% of those having middle incomes and 38% with lower incomes.

Upper-Income Consumers Most Inclined to Trim Debt – D. Jacobe, Gallup

Add comment July 10th, 2009

We’ve Wiped Out All The New Jobs Of The 21st Century

What’s the best way to express just how bad the job market is? You could look at the soaring unemployment rate, or perhaps the ever-shortening work week. How about this: Total nonfarm payrolls, notes economist James Hamilton, are now back to where they were in mid 2000, and in a few months they’ll certainly be back to pre-2000 levels. 21st century job creation: gone.

All Jobs Created in the 21st Century Are Now Gone – Clusterstock

Add comment July 10th, 2009