I did find this barried in the new bill that also passed the House today.

Paying off on old terms
Card issuers can’t change the terms for repaying a balance, except that the issuer may give the cardholder either:

Five years to pay off the outstanding balance at the old rate; or
An increased minimum payment that has no more than twice as much of a contribution to paying down the balance as the old minimum payment.

In this case my increase would have only been $400.00 per month instead of the $800.00. I wonder how many more account holders will see a 5% increase in minmum payment before Feb of 2010.

I am 100% behind your statements. Any increase in minimum payment should have either and opt-out or only apply to NEW purchases. If Obama signs the Card Holders Bill of rights that pass the senate yesterday, it’s terms would start in 9 months. 1 (small) step for us. At the very moment I am not happy with our 2 senators from South Dakota as they were part of the lonely 5 that voted nay! I have emailed both of them several times and always get the same canned reply about how it will hurt more than it will help. But we are the home of many card companys, Citi-Group included. Job loss is threat but I guess they forgot about all of the jobs that have already been moved out of State and Country!!

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/13/AR2009051302559.html

Let them know that the current proposed legislation is not strong enough nor is it soon enough. Ask them the following questions – Why should the current usurious interest rates be allowed to continue? Why should the banks get an additional year to “reform” when the proposed “reforms” will only give the consumer an additional 30 days notice? Tell them that the threat of less available credit to consumers if these “reforms” pass is an empty one. The banks have already made credit inaccessible by these very abuses!

The so-called reforms will be made ineffectual by such tactics as those currently being “beta tested” by Chase Bank. The current proposed legislation does NOT address increases in minimum payments. I predict that this will be used to strong arm consumers to agree to higher interest rates in exchange for lower minimum payments. Since the Federal Reserve and the Office of Comptroller of the Currency have done little to address the current abuse by Chase i.e. raising minimum payments by 250%, it seems likely that this loophole will be the banks’ trump card for use in the event that any sort of legislation is passed.

To date, I have seen no Congressional representatives challenge any of the double talk brought forth in the so-called hearings that the American public has been allowed to witness. The bankers have been allowed to babble about FICO scores and increased risk to them. I have seen no instance of anyone responding with the fact that the banks are turning their good customers into “bad” customers by jeopardizing their solvency with abuses such as increasing their minimum payments by 250% or extending the term of their debt by tripling their interest rates!

Don’t let them get away with putting the responsibility for reform on the Federal Reserve. These banks ARE the Federal Reserve. James Dimon, the CEO of Chase Bank is the Chairman and Chief Executive Officer of the Federal Reserve District 2 – New York. This is a blatant conflict of interest that nobody of any prominence is willing to address.

http://www.federalreserve.gov/generalinfo/listdirectors/

I am very disappointed by comments made by various members of Congress that indicate either a complete refusal to understand the impact the actions of these banks has on the general public or a callous disregard of the plight of the average American.

Nevertheless, please let your Congressional representative know that you are on to their game and that you are watching their actions closely.

http://thecaucus.blogs.nytimes.com/2009/05/13/senate-rejects-limit-on-credit-card-interest-rates

Slaughter the fatted calf for the prodigal lenders.

You have eyes but cannot see.

http://consumerist.com/5251541/chase-invites-customers-to-skip-a-payment-accrue-finance-charges-instead

The shell game begins anew between Congress and the credit card companies. What a surprise.

I love the cartoon, and I certainly agree with the creator’s sentiment (and yours)!

Happy Mother’s Day!

I have just concluded final exam week (along with being very sick a few days ago with the flu). I have therefore not been able to keep up with creating new posts, either, so I appreciate your contribution in that regard as well. This site is a big responsibility, and I can use all of the help that I can get.

Take care.

JP Morgan faces SEC lawsuit

http://www.ft.com/cms/s/0/8c2e1fd2-3c1e-11de-acbc-00144feabdc0.html?referrer_id=yahoofinance&ft_ref=yahoo1&segid=03058