12/02/2009 - For millions of credit card customers, here's the good news: As of Feb. 22, a new law will bar banks from a host of practices that consumer advocates have long blasted as unfair.
No more rate hikes based on, say, the late payment of a cell phone bill. No more increases on existing balances. And consumers will know how long it takes to pay off their balance when they make minimum payments.
But here's what the new law won't do: It won't prevent interest rates from going up for the vast majority of customers.
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While most credit card holders already have variable-rate cards, banks have been busy these past few months making sure nearly all customers have those kinds of cards. In addition, some banks are setting a floor on certain accounts to prevent rates from sinking below a minimum level, according to a Pew Charitable Trusts study.
Read the full article Credit Card Rates: Nowhere To Go But Up on CNNMoney.com.
Pew is no longer active in this line of work, but for more information visit the Safe Credit Cards Project on PewHealth.org.