A report from the Consumer Federation of America and Consumer Action says that card companies are resorting to unfair tactics that will stay in place long after the provisions in the reform bill take effect.
Under the reform bill, companies will no longer be able to instantly slap customers with punitive interest rates or excessive late fees if a payment is a few days late. Other provisions govern how long high interest rates can remain in place and how credit cards can be marketed to young people.
However, the groups warn that some of these ongoing practices include abrupt cancellation of accounts and higher annual fees and balance transfer fees. Credit card companies are also said to be continuing to use universal default, where a customer faces higher interest rates for being late on another company’s card.
The consumer groups are also advising people to be on the lookout for minimum payments that are being increased without notice and unclearly stated policies about when a person can opt out of certain fees.
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