Would a Credit Card Bill of Rights Ultimately Help or Harm Consumers?

• “Help”

  

  “Prohibits Retroactive Application of Rate Hikes for Consumers ”

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Prohibits Retroactive Application of Rate Hikes for Consumers

Consumer Federation of America

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The Act would prevent issuers from raising rates retroactively to prior balances borrowed at a lower rate because of a supposed problem with another creditor or a drop in the consumer’s credit score (a practice known as “universal default”). Thanks to universal default, even consumers who are in good standing with their credit card issuer can be subject to retroactive interest rate hikes from other credit card issuers. 

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"Help" CFA

• Act Would End Bait and Switch Contract Clauses
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• Cardholders Would Not Pay Interest on Debt Already Paid Off
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• Issuers Would Have to Fairly Apply Payments to Card Balances
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• Prohibits Retroactive Application of Rate Hikes for Consumers
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• Act Curbs Late-Fee “Gotcha” Tricks
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"Harm" AFSA

• Policymakers Need to Look at the Big Picture
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• The Right Numbers Tell a Different Story
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• Price Controls are Not the Way to Go
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• Risked-Based Pricing Benefits the Customer
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"Harm" CEI

• The Market Provides Abundant Choices
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• The Poor—and Those With Bad Credit—Would Suffer Most
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• Deregulation Provides the Best Path to a Better Consumer Experience
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Do We Need Credit Card Rights?

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