As we get closer to the implementation date of the CARD Act, experts and consumers alike are looking to see what credit card issuers are planning to do next. If the recent test of raising interest rates to 79.9% performed by Premier Bank was any indication then we could very well be at the beginning of what will feel like a very long year.
With many of the most hectic changes occurring within the last quarter of 2009, issuers targeted both those that were in good standing as well as those that were not. During that time cardholders saw major movements in every aspect of owning and using a credit card. These changes included record interest rate increases, decreases in credit limits, the purging of rewards, and huge increases in annual fees among other fees.
So will there be at least one more push by the banks to find ways to make up the revenue that is lost by defaults and charge-offs? While I hope the answer is no, experts have concluded that there will be at least one more round of changes before the new law takes effect. Only time will tell if the changes that are made though will be to the same extent of those in the past. While many people really don’t believe that it will steer issuers from making more drastic changes to consumer’s accounts, we do have many eyes at the White House looking carefully at financial institution’s next moves.
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