Credit card firms prepared for new law

Credit card firms prepared for new law

NEW YORK, Dec. 9 (UPI) -- Credit card industry analysts say U.S. firms will be able to recoup losses expected from the credit card law that goes into effect in February.

Analyst Bruce Harting at Barclays Capital said an estimated 20 percent reduction in revenue from fees "will be more than offset by declining credit costs and stable margins," USA Today reported Wednesday.

At Stifel Nicolaus, industry analyst Christopher Brendler said credit card issuers had "protected themselves pretty well."

The law makes it harder for firms to raise rates unexpectedly and limits fees for over-limit spending to those who agree to the fees in advance.

Some believe credit card companies violated the intent of the law by raising rates for millions of consumers after the law was signed with a nine-month grace period before taking effect.

http://www.upi.com/Business_News/2009/12/09/Credit-card-firms-prepared-for-new-law/UPI-21381260380355/

They're jacking up everyone's rates NOW, before the new law goes into effect. My rate (and I have an excellent history) nearly doubled.

Oh, and for this:
"Some believe credit card companies violated the intent of the law by raising rates for millions of consumers after the law was signed with a nine-month grace period before taking effect."

They didn't violate the intent of the law. They went along with the intent of the damned grace period. That's precisely why the grace period was included in the law.

Big business loves dems now as much as rethugs.