December 22nd, 2008 by Reed Allmand 
The Star Telegram reports that Federal regulators are implementing sweeping new rules for the credit card industry that will, amongst other things, prevent credit card companies from increasing interest rates on existing credit card account balances. But unfortunately the new restrictions won’t help debtors now, because the new rules wont take effect until July 2010.
The new rules will only allow credit card companies to raise interest rates on new credit cards and future purchases and cash advances. Also, the new rules would prevent credit card companies from allocating payments to balances with lower interest rates when a debtor has balances with different rates. In addition, debtors will get more time to pay balances and credit card companies will be required to give 45 days notice before any changes are made to the terms and conditions of the credit card account, that’s an additional 30 days.
It’s undeniable that this is good news for many cash strapped debtors struggling with credit card debt; but why is it being implemented in July 2010? Credit card debtors need help NOW. In two years many of these debtors will be suffering from collections, judgments, garnishments,bankruptcy and/or foreclosure. There was no delay for the banker bailout. These new rules need to be implemented now, helping to relieve the financial pressure many debtors are experiencing.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
View all posts by Reed AllmandSubscribe
Subscribe to our e-mail newsletter to receive updates.
