There are quite a few changes coming on a bill that was passed (a piece of legislation) that puts a lot of restrictions on credit card lending that were never there before. Some may think that this new list of restrictions may be bad for the economy in that it makes credit card lending more expensive for the credit card companies and therefore less desirable for them to market and grant credit to a lot of consumers and stalling the economy further, but there are countless others who think that this type of legislation has been a long time coming and is overdue, to protect the consumer from themselves and also from predatory and unfair lending practices in the process.
Among the changes to credit cards coming in July, they will not be allowed to grant credit cards to anyone under the age of eighteen, nor market them this way. This means that the government will be protecting young people with immature planning and fiscal responsibility from making a mess out of their financial future right from the get go. I agree with this one. I lived without a credit card til I was eighteen, and even then I used it way too much and got myself in trouble, whereas when I matured I realized this was no way to live and paid it all off, so I see why younger people need to be protected from making the same mistakes that they potentially can never climb out of again.
Another change is that charges for payments over the phone will be banned. Right now, many credit card issuers will actually charge their customers an additional fee for doing the responsible thing and making their credit card payment over the phone. I mean, that’s ridiculous, and that should be banned if you ask me.
It would also put a stop to the practice of increasing interest rates for those that have a late payment or two and also put certain restrictions on jacking up the monthly amount due when someone’s rates go up, all of which are consumer protection measures. As to whether they will work or whether they may make getting credit a lot harder, time will tell.