Is More Credit Card Regulation Hurting Consumers?

Regulations are supposed to help consumers, right?  Perhaps someone should remind the current administration. There is no denying that the Credit CARD Act of 2009 has appeared to help consumers in many ways.  Interest rate hikes are less common.  Late fees are less frequent: 28 percent of households paid these fees in 2012, compared to 52 percent in 2008.  Over-limit fees follow a similar trend. However, there are two sides to every coin. For starters, there's no such thing as a free lunch in life.  You don't need a degree in economics to know that when businesses are forced to reduce profits in one area, inevitably, they will have to make up the shortfall elsewhere.  That's just common sense. During the first year that a new credit card account is opened, it is now almost impossible for the bank to raise the interest rate.  The standard APR is essentially locked, unless the account is 60 days delinquent, or there is an increase in the Prime...(Read Full Article)

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