In December of last year, Federal Reserve Chairman Ben Bernanke announced sweeping changes to credit card regulation that will take place in July 2010. The rules will benefit card holders in several ways. However, the rules do not apply to everyone, and certain groups will not reap the benefits. Two groups that lose out are businesses and business owners.
Not only have business owners had to deal with increased veil piercing and business debts showing up on personal credit reports, but also they have to worry about not being protected by some of the most egregious practices by banks. It is possible that because consumers will have increased protection, businesses will have less protection, and therefore be the target of increased rates, higher fees etc. to offset loses in companies’ consumer divisions.
On the other hand, things could get worse for the consumer. Banks could raise interest rates and impose fees on Jun. 30, right before the new rules go into effect. They have already shown no qualms about doing that now even when consumers are already hurting. Perhaps they have started changing terms now so consumers won’t notice that they are being boiled alive like in the boiling frog syndrome. Only time will tell which group—consumers or businesses—come out better in July 2010. In my opinion, it will be a net gain of zero or worse.
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Kevin, I think in addition to massive lobbying of our representatives in congress, we need to organize massive marches and PEACEFUL demonstrations outside the headquarters of all the major banks.
Corporations do not like bad publicity. Imagine the visual of thousands upon thousands of people congregating on the steps of these banks. I’m talking about simultaneous PEACEFUL protests across the country with local media there to cover each and every one of them.
I think then and only then will the banks begin to realize that they can no longer hold us hostage. Let us speak up for ourselves!
Fed regulations were actually introduced in May 2008, decided upon in Dec 2008 to be implemented in 7/10. Because credit companies need 3 years to program software? Give me a break. 3 years to raise everyone's rates so that the rules have absolutely no relevance to 90% of people in this country. But, I have one billing cycle to adjust to the fact that my credit card company has decided to raise my interest rate on my entire balance for no real reason except "present economic environment" according to my notice. What BS.
It will not be a wash - or zero sum. It will be a bloodbath. And it will send this economy into a down spin that will make the last 6 months look good. No consumer spending to prime the US economy as people try to pay down debt before rates increase. Bankrupted consumers defaulting on credit cards and homes as the crunch hits with increased rates and reduced credit lines combine with unemployment.
There are bills in Congress that could be voted on and put into law that could help consumers NOW! This website should have a form letter and links to Congress to help individuals lobby their reps on this issue. Kevin, forget about striving the "more open dialogue with credit card companies". We need government action to PROTECT us from credit card policies. NOW.
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About Me
Greetings! I’m Kevin D. Johnson, a business owner who has recently assumed the role of consumer advocate and internet activist. Atlanta, Georgia is my home.
My Story
Upon returning from my wonderful honeymoon in Jamaica in October 2008, I received what I thought was an ordinary American Express bill, but to my surprise it was a disappointing letter informing me that my credit line was reduced by about 65% for a highly suspicious and discriminatory reason. Considering my excellent credit score and pristine payment history, it just didn’t make sense. However, what does make sense are the unfair and insidious policies that I have uncovered when asking why. It is time to change them.
Good Morning America tells my story.
The Goal
I created this web site to document and share my challenging journey to change what is wrong, unfair, and unjust in the credit card industry. The ultimate goal of this web site is to inform consumers of ways to stand up for themselves against treacherous business practices and to educate consumers about how to improve their credit. Finally, I hope to encourage a more open dialogue with credit card companies about their policies–good and bad.
Success
I am proud to say that this blog's unyielding demand for change led to an important amendment in the final Credit CARD Act signed by President Obama on May 22, 2009. Despite this major accomplishment, there is still more work to be done.
Testifying at a bill hearing in Annapolis, Maryland
Speaking Engagements
In an effort to educate as many people as possible about financial management, especially about how to manage the current credit crisis, I have begun to speak around the country at colleges, universities, corporations, chamber of commerce meetings, congressional hearings, trade organization meetings, etc. Having acquired a wealth of information that will help to empower people and to improve their financial future, I feel that sharing this information is the least I can do to make a positive impact. For information on my availability for speaking opportunities, please send an e-mail to Jennifer Silverman at jennifer@silvermanworldwide.com.
Speaking at a university
Disclaimer
All information provided on NewCreditRules.com is provided for information purposes only and does not constitute or substitute for professional financial advice. Information on NewCreditRules.com is subject to change without prior notice. Although every reasonable effort is made to present current and accurate information, NewCreditRules.com makes no guarantees of any kind. This web site may contain information that is created and maintained by a variety of sources both internal and external. These sites are unmoderated forums containing the personal opinions and other expressions of the persons who post the entries. NewCreditRules.com does not control, monitor or guarantee the information contained in these sites or information contained in links to other external web sites, and does not endorse any views expressed or products or services offered therein. In no event shall NewCreditRules.com be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any such content, goods, or services available on or through any such site or resource.
Greetings! I’m Kevin D. Johnson, a business owner who has recently assumed the role of consumer advocate and internet activist. Atlanta, Georgia is my home.
Upon returning from my wonderful honeymoon in Jamaica in October 2008, I received what I thought was an ordinary American Express bill, but to my surprise it was a disappointing letter informing me that my credit line was reduced by about 65% for a highly suspicious and discriminatory reason. Considering my excellent credit score and pristine payment history, it just didn’t make sense. However, what does make sense are the unfair and insidious policies that I have uncovered when asking why. It is time to change them.
I created this web site to document and share my challenging journey to change what is wrong, unfair, and unjust in the credit card industry. The ultimate goal of this web site is to inform consumers of ways to stand up for themselves against treacherous business practices and to educate consumers about how to improve their credit. Finally, I hope to encourage a more open dialogue with credit card companies about their policies–good and bad.
I am proud to say that this blog's unyielding demand for change led to an important 
Kevin, I think in addition to massive lobbying of our representatives in congress, we need to organize massive marches and PEACEFUL demonstrations outside the headquarters of all the major banks.
Corporations do not like bad publicity. Imagine the visual of thousands upon thousands of people congregating on the steps of these banks. I’m talking about simultaneous PEACEFUL protests across the country with local media there to cover each and every one of them.
I think then and only then will the banks begin to realize that they can no longer hold us hostage. Let us speak up for ourselves!
Posted by: MJ | March 16, 2009 at 03:36 PM
Fed regulations were actually introduced in May 2008, decided upon in Dec 2008 to be implemented in 7/10. Because credit companies need 3 years to program software? Give me a break. 3 years to raise everyone's rates so that the rules have absolutely no relevance to 90% of people in this country. But, I have one billing cycle to adjust to the fact that my credit card company has decided to raise my interest rate on my entire balance for no real reason except "present economic environment" according to my notice. What BS.
It will not be a wash - or zero sum. It will be a bloodbath. And it will send this economy into a down spin that will make the last 6 months look good. No consumer spending to prime the US economy as people try to pay down debt before rates increase. Bankrupted consumers defaulting on credit cards and homes as the crunch hits with increased rates and reduced credit lines combine with unemployment.
There are bills in Congress that could be voted on and put into law that could help consumers NOW! This website should have a form letter and links to Congress to help individuals lobby their reps on this issue. Kevin, forget about striving the "more open dialogue with credit card companies". We need government action to PROTECT us from credit card policies. NOW.
Posted by: dm | March 15, 2009 at 05:35 PM