According to an article in the Star-Telegram, credit card lenders such as Bank of America, Chase and Discover have switched many credit card customers from fixed rate credit cards to variable rate credit cards ahead of the new credit card legislation that will limit the credit card industry’s ability to increase rates in the future. But in an effort to counteract the bad press received about their actions, several credit card companies have pledged to not increase credit card interest rates before the new law takes affect.
The article said:
“Bank of America pledged Tuesday not to increase credit card interest rates or fees before a new law intended to reform industry practices takes effect in February.” Unfortunately for many Bank of America credit card customers, the bank’s announcement is useless since their credit cards have already been changed to variable rates which will rise or fall as prime interest rates change. If you have credit card account with any company, not just Bank of America, please take a close look at your statement. Has your account been changed from a fixed rate account to a variable rate account? If so, you may want to negotiate with the lender to have your credit card account changed back to a fixed rate account, or even consider switching credit card companies because variable rates can become very expensive as interest rates increase. Due to an outcry by consumers and advocacy groups, legislators are now introducing a new law that would cause the new credit card law to become effective December 1st as opposed to February to prevent further actions by credit card companies to avoid the ramifications of the new law.