Free4Life11
DIS Veteran
- Joined
- Apr 26, 2002
Credit card users are in for another surprise, and for a change its a pleasant one.
Banks are reducing some cardholders interest rates, thanks to a section of the credit card reform law that requires them to review any rate increases imposed since January 2009. Millions of consumers faced rate hikes that year, as the economy tanked, banks teetered, and credit card reforms loomed.
Federal Reserve data show the average interest rate assessed rose to 14.31 percent in 2009, from 13.57 percent in 2008.
Most consumers believe that it was the new credit card law that caused the higher rates, but it was completely because of the economy, said Odysseas Papadimitriou, chief executive of CardHub.com. He estimates between 91 million and 121 million cards got hit with a rate hike during the recession.
http://www.boston.com/business/pers...nks_to_lower_some_credit_card_interest_rates/
I can say this is TRUE. I had a Chase card (that was previously a Wamu card) and they lowered one of my rates by 5%...it's saving me $40 a month.
To digress...while the bank may be crying over the reform law and are now trying to screw with debit cards, THEY raised the rates of nearly 91 - 121 million cards because of the "poor economy" NOT the reform law. I'm so sick of hearing how the reform law hurts consumers...consumers got screwed WELL before this reform law went into effect!