Tuesday, November 3, 2009

Credit Card Companies to Raise Interest Rates

Article by: Harkamal Singh
Posted by: Srividya Srinivasan

In a new development, which has come as credit card companies' strike back to the latest legislation proposed by the Government which will make them cut back on their "unfair practices", credit card companies are now looking to increase their interest rates before the law is actually enforced.

In the legislation put forward, it was detailed that credit card companies are taking undue advantage of the current economic situation and looking to make more and more gains on the back of consumers who are finding it difficult to pay back the ever mounting credit card payments.

“Since passage of the Credit CARD Act, we found that credit card issuers have done little to remove practices deemed unfair or deceptive by the Federal Reserve”, said Shelley Hearne, managing director of the Pew Health Group, which recently conducted a study regarding the waycredit card companies have been slapping higher interests. “In fact, some of the most harmful practices have actually grown more widespread". The study took into consideration a dozen big banks nation-wide which held over 90% of the outstanding credit card debt.

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