Banks and lenders have reacted strongly against the new rules on credit card practices. The new rules impose stricter regulations in raising interest rates on credit card transactions.the regulations, which was adopted by the Federal Reserve and other federal regulators, also require credit card issuers to give sufficient time and notice to card holders before raising interest rates and making their payments. The issuers warned the new rules would reduce credit for consumers.

As expected, the banks would naturally react against the imposition of the new credit card rules. The banks’ reactions are totally out of place. With the bailout in place, the banks should not oppose the imposition of the regulations on credit card. After all, the financial mess is of their own wrongdoings. The government is just fixing the problems the financial insitutions have brought. So it is only right to protect the consumers, just as the government saved the asses of the banks’ “strategists” who brought the financial turmoil.

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Posted by Jones on December 28th, 2008 :: Filed under EVERYDAY MONEY STUFF
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