Loopholes in the Credit CARD Act

The credit card reform bill becomes effective in February.  Walletpop has these reminders:

There is no cap on the interest rate card companies are allowed to charge. While companies can't hike your rates on existing balances unless you're 60 days late with a payment, they can raise rates on future purchases any time and for any (or no) reason...

While the CARD Act has limits on the severity of penalty fees you can be charged, there's no rule against card companies making up as many new fees as they can conjure [annual fees, paper bill fees, inactivity fees] and charging whatever they like for them...

We told you card companies can't hike your rates on existing balances. That's true as long as you have a fixed-rate card instead of a variable rate card... This is the reason why card issuers have been switching people to variable-rate cards as fast as they can print out and mail the notices.


Your card company can lower your credit limit or close your card without giving you any warning at all... issuers tend to close cards that are inactive or aren't used very often...

More at the link.