nullgateway asked:


Right now many people pay on time (out of fear lets say) so that they do not trigger a 30% rise in their cards interest rates.. I just read the contact on a new card application and was shocked at how much a rate can jump so easily… Believe me when I say I get it…but now consider the following questions with regards to human nature.

Do you think that people will take advantage of the new laws which prevent rates from being raised quickly. Seems to me that many more people will now put off paying that bill on time (because of less fear of triggering an interest hike). What will stop the credit card companies from dramatically increasing the annual rate on a card or charging some fixed penalty fee (its not interest) ? Or just raise what they charge stores who in turn will raise prices.

If your credit report gets flagged for paying late I don’t think you could just “shop” for a lower annual fee. Wouldn’t all of the card companies see this and charge you a high annual fee no matter what company you went to? Is this a loop hole in the legislation? Would this now raise the cost of a credit card for everyone?

Anna