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  • Writer's pictureBob Brooks

The Great Credit Card Default


What if I told you that a new Consumer Financial Protection Bureau rule is being announced today, and it will affect credit cards, making things better for the consumer?


I would immediately think that it was about time. They will limit the interest rate that a credit card company can charge. That would be a step in the right direction.  


IT IS AS COMMONPLACE TO HAVE AN INTEREST RATE OF 30% TO 35% AS IT IS TO HAVE CREDIT CARD INTEREST RATES IN THE 20% RANGE. IT DOESN'T TAKE A ROCKET SCIENTIST TO KNOW THAT 30% PLUS INTEREST RATES ARE THE PROBLEM. SAID ANOTHER WAY, GREED IS THE PROBLEM OF THE DEBT MACHINE IN THIS COUNTRY.  


Here is the announcement as written by www.wallethub.com


"A new rule by the Consumer Financial Protection Bureau - (CFPB) - limiting credit card late fees to $8 in most cases will take effect on Tuesday, May 14th." 


Excuse me as I laugh hysterically. It keeps me sane. You mean if I am late with my payment (because I can't afford the 35% interest rate), the credit card company can no longer charge me $40? They are limited to $8? AND to add to that amazing new law change, because I was late with my payment, the credit card company has the right to raise that interest rate higher because I was late. 


Mr. Chopra, who runs the CFPB, must have spent grueling amounts of time getting this new rule established. How in the world did they have the insight to focus on the late fees versus the other more abusive practices that the credit card companies are heaping on the consumer? - (Please note the sarcasm.) 


I know that no one forced the consumer to use that credit card. Yet, two wrongs don't make a right. Consumers will not get out of debt by paying 30% plus interest rates. They will end up defaulting more than likely. That scenario will be bad for everyone. I just can't make this stuff up. 

 

You can still sign up for the webinar entitled How to Protect Your 401K/Retirement Accounts Against Risk. Read more and register by clicking here for the noon CST webinar today, May 9th. 

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