Just an FYI for those of you paying just the minimum balance.
New Rules Will Double Typical Monthly Minimums -- Is It Good News for Consumers?
July 20, 2005 — More than 115 million Americans carry monthly credit card debt. And if you're among those paying off a high balance, you may have an unpleasant surprise in next month's bill: a higher minimum payment.
"Good Morning America" Financial Correspondent Mellody Hobson discussed why payments are going up and what you can do about it.
Watchdog Group Cracking Down on Companies
The Office of the Comptroller of the Currency, a bureau of the U.S. Treasury Department as well as a watchdog to protect consumers from abusive and deceptive credit card practices, is cracking down with tougher guidelines on interest rates, marketing tactics and account management practices. According to BusinessWeek, credit card companies had a banner year in 2004, bringing in record profits of $30 billion, in large part due to fees and high balances.
In response to the OCC's call to credit card issuers to help their customers get out from the layers of debt, many national banks and credit card issuers are increasing their monthly payment requirements. For the millions of Americans struggling to pay off their credit cards, the mandated jump in monthly minimum payments may seem a bitter pill to swallow.
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