New Wave of Credit Card Abuses

Publication: CNN Money.com

Author: Ben Rooney


07/22/2010 - A 2009 federal crackdown on abusive credit card practices has exposed a litany of other ways consumers are being hosed.

That's according to a report released Thursday examining the Credit Card Accountability Responsibility and Disclosure Act.

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The study, from the Pew Health Group's Safe Credit Cards Project, found that most of the practices deemed "unfair" or "deceptive" by the Federal Reserve under the law have disappeared from new credit card offers since Congress passed the law.

"Most of the news is good, but we are seeing the rise of new harmful behavior," said Shelley Hearne, managing director of the Pew Health Group.

For example, issuers have been increasing fees for cash advances and balance transfers. Banks have hiked those fees to a median 4% as of March from 3% in July 2009, according to the study. Credit union cash advance fees rose to 2.5% from 2%.

The Pew researchers also found that penalty rate increases, which are not subject to CARD Act rules, remain widespread.

Read the full article, New Wave of Credit Card Abuses on the CNNMoney.com Web site.

Pew is no longer active in this line of work, but for more information visit the Safe Credit Cards Project on PewHealth.org.

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