Released: December 27, 2008

Curbing credit card predators

Source: New York Times (Free Registration)

Federal regulators are finally doing something about the unfair and deceptive credit card practices that have helped to keep millions of Americans permanently mired in debt. New rules issued last week will limit or prohibit some of the most blatant abuses. But the next Congress must do more if Americans are to get fair, clear credit card rules that allow them to make informed spending decisions. In recent years, credit card companies have stealthily adopted a variety of billing strategies that are designed to maximize penalties and fees, meanwhile driving up interest rates to 25 percent or higher. The companies hook cardholders with attractively low teaser interest rates — while reserving the right to raise those rates at any time and for any reason.

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