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Credit card reform becomes opportunity to hammer good customers |
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| Credit card reform becomes opportunity to hammer good customers |
| Wednesday, May 20,2009 04:19 AM |
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Leave it to the banks to try to turn passage of credit card reform legislation Tuesday into bad news for many cardholders.
Here's
the deal: Banks are basically saying that because they're going to have
to change some lending practices to comply with the bill, they'll be
facing greater risk.
To cope with that risk, they say, they'll have to turn the screws on
their best customers -- the ones who manage their finances prudently
and pay off their bills on time -- by possibly raising interest rates,
scaling back rewards and imposing annual fees.
"Those who have
managed their credit well and currently have very good credit card
deals will find that card companies are limited in their ability to
distinguish between them and those that have credit problems," Edward
Yingling, president of the American Bankers Assn., said in a statement.
"The
result will be some subsidy from those that manage their credit well to
those that have problems, affecting negatively the terms the former
will receive."
Read the whole thing here: http://www.latimes.com/business/la-fi-lazarus20-2009may20,0,4747280.column
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