Credit Card Holders Fight Back

The new Credit Card Bill signed by President Obama, originating from the Senate Banking Committee, chaired by Senator Christopher Dodd, is still another situation where those who are responsible and pay their bills on time are punished financially in favor of those who don't. Congress approves these Bills without even reading them, or knowing what's in them. Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase. If you pay your credit card on time and in full you still will be charged finance fees. Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks recently said: “Those that manage their credit well will in some degree subsidize those that have credit problems.” Here we go again, this is similar to bail out of mortgage forfeiters at the expense of taxpayers. Not wasting any time to take advantage of this CITI Group is ALREADY charging finance charges on credit card holders that pay in full and on time.

This time however there is an opportunity for people to stand up and fight. Here is what is recommended.

Monitor very closely all charges on your credit card statement. If they start to charge finance charges for paying on time stop using that card. Do not cancel it to begin with since unbelievably that affects your credit rating. If they try to charge an annual fee cancel it, anyway.

Use the cards that DON'T charge finance charges, if any. It may be better to use credit cards issued by local banks. Local banks can use this as an opportunity to improve their business by simply being fair to customers. There is little question the larger banks will attempt to take advantage of this.

Try using an American Express card since they have always required to pay in full. If they begin adding finance charges stop using that too.

Use your debit card, but still looking for any finance charges on that.

Begin paying in cash more, or by check.

People are urged to fight back on this by following the above recommendations. Most importantly card holders need to look at their statements very critically and question anything that doesn't look right.

In our book, charging someone a finance charge for paying on time and in full is nothing short of stealing. Americans need to start standing up and fighting for their rights and fair treatment. This is an opportunity to do it.