The Credit Card Holder's Bill of Rights Act of 2008

[Ceicei]

There is a bill that is on its way through (H.R. 5244) and aims to end unfair practices done by credit card companies. MSNBC has an article (two pages) explaining about this further. What do you think of this bill?

http://www.msnbc.msn.com/id/23259179/

What are some experiences you have seen (either of your own or others) regarding credit cards? How were you (or your friends) able to handle/resolve some of these unfair practices? I've known of some people who were able to reduce the interest rate on their own cards simply because these people warned the companies they would transfer the balance elsewhere--as a result, some of the companies agreed to reduce the rate simply to keep these "customers".

- Ceicei

 

[crushing]

Don't forget your right to not have or use credit cards!!!!!

I had my credit card through my credit union. Haven't had any issues of unfair practices and the interest rate was 9.5%. I hear that is a pretty good rate for a credit card. I'm still done with credit cards!!! Well, other than the one I have for work. They won't reimburse my business expenses if I don't use it, which is pretty annoying.

I have had fraudulent charges and had to have my numbers changed twice in the last couple years.

 

[Empty Hands]

Don't forget your right to not have or use credit cards!!!!!

Almost nonexistent, if you want to live a "normal" life. Just try to rent a car, buy a night in a decent hotel room, or purchase a plane ticket without one!

 

[Ceicei]

Don't forget your right to not have or use credit cards!!!!!

Almost nonexistent, if you want to live a "normal" life. Just try to rent a car, buy a night in a decent hotel room, or purchase a plane ticket without one!

Some say the solution to this is a debit card--limited only with the existing money deposited into the account first by the card holder. Has anyone run into problems with using debit cards?

- Ceicei

 

[newGuy12]

Almost nonexistent, if you want to live a "normal" life. Just try to rent a car, buy a night in a decent hotel room, or purchase a plane ticket without one!

Wait now... how about a debit card? I purchase merchandise using the internet with my visa debit card, not a credit card. As a matter of fact, that was the method of payment for my membership here to this community.

It is safer to use than a credit card from what I can tell.

 

[Empty Hands]

Has anyone run into problems with using debit cards?

Wait now... how about a debit card?

Personally I am not sure, since my debit card is technically both. I have never had a "pure" debit card. I have seen from some sources such as car rental places that you need this mixed type, as it has to have a visa or mastercard logo on it.

 

[Flying Crane]

My advice is this: get a credit card that has absolutely no annual fees attached. Also, get one that gives you some sort of payback. My card gives me points for all my purchases that can be redeemed for various merchandise if I save enough. I can get airline tickets and car rentals and stuff, but the best thing it offers is that you can simply trade in your points for cash. For every $5000 in purchases, I can trade in my points and get $50 in cash.

But the most important thing is this: PAY THE DAMN THING IN FULL, EVERY SINGLE MONTH!!!! Do this as if your very life depended on it. If you do this, you will never pay interest, so no matter how bad the interest rate is, it has no affect on you.

And do not use it for cash advances, because you will pay fees and interest, and that includes using the Balance Transfer Checks that they send you and try to sucker you into using. Don't fall for this crap. Just use the card for upfront purchases. Nothing else.

We use our card for all kinds of necessary expenses. Things like groceries, gas for the car, just about everything. So we rack up the points that we can trade in, but since these are things we would need to pay for each month regardless, we just shift that cash over to pay the credit card. But do not let yourself get caught in a cycle of carrying a constant balance on your card. If you do, you may as well bend over and kiss your own butt good-bye.

So when you are making your purchases, you need to keep in mind whether or not you are in a position to pay this off when the bill arrives. It takes a bit of self-control, but you just need to not allow yourself to get too caught up in out-of-control consumerism.

So we pay absolutely no fees, no interest, and we get paid for using the card. Works for me.

 

[Sukerkin]

Some say the solution to this is a debit card--limited only with the existing money deposited into the account first by the card holder. Has anyone run into problems with using debit cards?

- Ceicei

Not yet ... :crosses fingers: .

 

[Live True]

Article quote:
In a statement, Edward Yingling, president of the American Bankers Association, says he has “serious concerns” that certain aspects of this legislation “would have unintended consequences such as more expensive and less accessible credit.”

...Like this is a bad thing?!?!?

Seriously, when working as a credit counselor I saw MANY clients who should not have gotten credit cards with $1000...5000+ credit limits. Their credit reports showed a history of high credit, high balances, and frequent payday loan defaults. To top it off, they were given store credit cards with the "low" rates of 18-25%....oh, but wait...we send you coupons every month becuase you have the card!

I think this legislation, if it is allowed to pass, would level the playing field and force fair practices. It would also, as a side benefit...hopefully...help people learn to use credit more wisely?
alas...that last is probably a pipe dream...

 

[Kacey]

But the most important thing is this: PAY THE DAMN THING IN FULL, EVERY SINGLE MONTH!!!! Do this as if your very life depended on it. If you do this, you will never pay interest, so no matter how bad the interest rate is, it has no affect on you.

This is not always true - some cards charge interest from the time the card is used; there is no grace period. Check the fine print when you choose a card. Also beware 2-cycle billing - which means that your interest is charged on the average amount due in the last 2 months, which can substantially raise your interest payment.

 

[Flying Crane]

This is not always true - some cards charge interest from the time the card is used; there is no grace period. Check the fine print when you choose a card. Also beware 2-cycle billing - which means that your interest is charged on the average amount due in the last 2 months, which can substantially raise your interest payment.

Then you need to get a different card. Seriously, there are so many cards available, I have never seen one that charges interest from the day of purchase. I have had many cards, most of which I never actually used, but all of them had a grace period before any interest was charged. If you pay it by the due date on the bill you don't pay any interest whatsoever.

I feel there is absolutely no reason to have one of these other cards. Everyone should simply refuse to use those kinds of cards, and force the company to change it's practices or go out of business.

If anyone is interested, my card is from Charles Schwab Bank. Go to www.schwab.com then hit the Banking and Lending tab, then Credit Card selection.

 

[Kacey]

Then you need to get a different card. Seriously, there are so many cards available, I have never seen one that charges interest from the day of purchase. I have had many cards, most of which I never actually used, but all of them had a grace period before any interest was charged. If you pay it by the due date on the bill you don't pay any interest whatsoever.

I feel there is absolutely no reason to have one of these other cards. Everyone should simply refuse to use those kinds of cards, and force the company to change it's practices or go out of business.

If anyone is interested, my card is from Charles Schwab Bank. Go to www.schwab.com then hit the Banking and Lending tab, then Credit Card selection.

I'm not disagreeing - I don't have one of them either. But I have received offers that looked good until I looked at the billing methods, and saw either 2-cycle billing or no grace period. It's something else to watch out for - and not all people read the information carefully enough to avoid it.

As far as myself personally - I have several, only one with a balance, which will be paid this month, and it only has a balance because I had to buy a plane ticket; it'll be paid off as soon as I get paid the end of the month. Be sure to read the information from your card issuer; I had one with very good terms, until a notice came out that they were switching to 2-cycle billing, which I promptly dropped.

 

[Flying Crane]

But I have received offers that looked good until I looked at the billing methods, and saw either 2-cycle billing or no grace period. It's something else to watch out for - and not all people read the information carefully enough to avoid it.

yes, it's true, people gotta watch out for themselves, because nobody else will. Be careful what you sign up for.

 

[Cryozombie]

Enterprize Rent-a-car will not take a debit card... it has to be a Credit card.
​

 

[Big Don]

Don't forget your right to not have or use credit cards!!!!!

I've done without them for ten years now. My ATM card has a VISA tie in when needed, which is rare in the extreme.

You also have a right, no, a responsibility to read all the fine print and fully understand what you are getting into. Failure to do so, makes you stupid.

 

[Ceicei]

Some additional information for those people who may be struggling with credit cards. Some nice tips mentioned in the link below, although none that differ from what were brought up in this thread.

http://www.cnn.com/2008/LIVING/personal/02/22/financial.security/index.html

- Ceicei

 

[Ping898]

Some say the solution to this is a debit card--limited only with the existing money deposited into the account first by the card holder. Has anyone run into problems with using debit cards?

- Ceicei

What about the fact that if someone steals your card info and starts debiting your account you have no protections like with a credit card....what about the fact that a lot of debit cards have limits...just try and purchase a $10,000 home theater system with a personal check or a debit card and see how far you get....it is hard if not impossible to be a functioning "normal" person and not have a credit card. Even if I didn't have one for myself, I still would have the one my job forced on me for travel for work....

 

[crushing]

What about the fact that if someone steals your card info and starts debiting your account you have no protections like with a credit card....what about the fact that a lot of debit cards have limits...just try and purchase a $10,000 home theater system with a personal check or a debit card and see how far you get....it is hard if not impossible to be a functioning "normal" person and not have a credit card. Even if I didn't have one for myself, I still would have the one my job forced on me for travel for work....

I don't know about other cards, but the Visa website says that their debit cards are protected the same way their credit cards are. You may want to check with your provider, which probably isn't all that different.

http://usa.visa.com/personal/using_visa/personal_finance/debit.html

Also, I'm not familiar with any limits on debit card purchases.

 

[CoryKS]

Also, I'm not familiar with any limits on debit card purchases.

Well, you do have to have the money in your account. Overdraft protection is only going to carry you so far.

Frankly, it's hypocritical of the government to be "protecting" their dumb citizens from their own dumb financial decisions while simultaneously offering a lottery by which they generate money from their citizens' dumb financial decisions. What's the motivation for this bill? Professional jealousy?

 

[cdunn]

I don't know about other cards, but the Visa website says that their debit cards are protected the same way their credit cards are. You may want to check with your provider, which probably isn't all that different.

http://usa.visa.com/personal/using_visa/personal_finance/debit.html

Also, I'm not familiar with any limits on debit card purchases.

Protection exists. I had somebody rack up a grand on my debit card / bank card, and the bank was all over it before I even had a whiff of the problem. Over all, it was one of those moments where I was very, very glad I had the bank I did. And the only place that gives me any trouble with using it is the ultra-cheapo off brand grocery store that only accepts cash and ATM cards - I have to use it as an ATM card there.