Lenders’ full court press
October 24, 2009 by Marcy Einhorn, Esq.
A new law to protect consumers, passed in May ’09, doesn’t become effective for a full 15 months, August ’10!
Lenders have figured this out, and are doing all they can to take full advantage of the 15 month gap by intensifying exploitation of consumers during this interregnum.
Rates are up a full 20% on average! (Watch for a report by the Pew Charitable Trusts Safe Credit Cards Project this week).
Ben Bernanke has acknowledged that this date should be moved up to December 1,...
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Regulation Z (Truth in Lending)
October 7, 2009 by Marcy Einhorn, Esq.
The Federal Reserve Board proposed rules amending Regulation Z (Truth in Lending) to protect consumers who use credit cards from a number of potentially costly practices.
Among other things, the proposed rule would:
* Protect consumers from unexpected increases in credit card interest rates by generally prohibiting increases in a rate during the first year after an account is opened and increases in a rate that applies to an existing credit card balance.
* Prohibit creditors from issuing a credit...
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