Connecticut Credit Card, Rolled Back Interest

By: EconomyWatch Content Team   Date: 2 February 2010

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As of February 22, 2010, the new credit card protection act will be going into effect.  Known as the CARD Act, credit card companies, banks, and credit unions cannot increase interest on existing card balances.  With this, any increase can only be added on new charges and even then, there are some special considerations.  However, for people with a Connecticut credit card, the Attorney General of this state stepped up to the plate to ask the Federal Reserve’s Chairman to take action on interest and fees being increased prematurely.

For some reason, it appears that in recent months, certain credit card companies have been increasing both interest rates and fees on some Connecticut credit card accounts before the new law goes into effect.  Therefore, the Attorney General knew he needed to take action and he did.  His request was for the Federal Reserve to put a stop to this action and even rollback some of the increases that had been made.

CARD, which is the acronym for Credit Card Accountability, Responsibility, and Disclosure Act, was designed so issuing companies of credit cards would have to follow new laws, stricter laws.  The entire purpose of CARD being developed was to gain some control over the amount of interest, as well as varying fees being charged to credit account cardholders.  Therefore, people with a Connecticut credit card or a card from any state would not be taken for a ride.

While the goal of this new law is excellent, protecting people with a Connecticut credit card or any state card, it has also leveled the playing field for issuing companies.  With this, all cards, whether issued by a credit card company, bank, or credit union has to follow the same rules.  Then for the cardholder, this would give the Connecticut credit card account holder a great opportunity of being more confident when searching for a new card.

In Connecticut, the problem of premature increases for interest and fees got so out of hand that literally, the Attorney General’s office received hundreds of consumer complaints.  Sadly, some issuing companies had become so aggressive and bold in trying to make changes before the February 22, 2010 deadline that they increased interest on cards to 30%!  Obviously, that type of rate is simply not acceptable or fair for anyone with a Connecticut credit card or any state card.

What people looking for a new Connecticut credit card need to take from this is that the very issuing companies that took advantage of time and chose to increase rates prior to the date should be avoided.  If these companies and financial institutions cannot be trusted before the new CARD law goes into effect, they certainly could not be trusted after.  Therefore, cardholders can use this to find a reputable and trusting credit card company, bank, or credit union when choosing a new Connecticut credit card.  As mentioned, with the playing field being fair, this would also open up more possibilities for cards specific to interest and fees!


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