Reigning in Credit Card Companies and How They Gouge Consumers

Ever missed a payment on your credit card? I rarely do, but many hard working families are struggling to make ends meet. Some are relying on credit cards to feed their families and cover rent.

Credit card companies successfully lure in customers with zero or low interest deals and then, once you've accrued thousands of dollars in credit, your interest rates rise either by default or penalty. If you're late on just one payment either through error or circumstance, you're completely screwed forever because your penalty is often an interest rate rise of 10-30 per cent. That is how credit card companies gouge consumers. Lure them in and soak them for every dollar they can

Those days are over...well they will be as of July 2010. The Obama Administration and the House have approved The Credit Card Bill of Rights - legislation that will eliminate sudden increases in interest rates and late fees, prohibit so-called double-cycle billing and retroactive rate hikes and would prevent companies from giving credit cards to anyone under 18.

This is a good deal. Except the bill should take effect immediately and I hope the Senate pushes the implementation date forward. July 2010 is too long to wait - especially if you're facing down 27% interest in a credit card balance of $12,000 a year.