New credit card rules designed to protect consumers from hidden fees are in affect today giving credit card industry impetus to begin finding ways to get around the newly implemented rules. In what is being considered the most dramatic instance of credit card reform on record, banks will be unable to increase rates for the first year after an account opens in addition to being forced to discontinue over-the-limit fees More over double cycling billing will become illegal as will college students acquiring credit cards without a parent as a cosigner.
Naturally, credit card companies are unhappy with the new limitations and have already begun getting around rate restrictions by increasing rates and then refunding excess payment depending on whether the costumer pays as scheduled. If payment is tardy, credit card companies will force payment of the initial high rate, making the bottom line before and after the reforms relatively the same.
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