It looks like we may actually have a few friends in Washington when it comes to credit card reform. Apparently, many politicians have put fighting high credit card fees at the top of their hit list when it comes to legislative change on Capitol Hill
Easy enough for me to say, since I am employed and not currently facing any hard financial roadblocks. But, what about the family with the father or mother that just got laid off or just got hit with some big medical bills? Falling behind on your credit card payments is a reality these people may have to face. How are they expected to ever get back on track when they are being hit with $39 late fees each and every month?
That is exactly the reason for the government’s investigation into the matter. In fact, the U.S. Government Accountability Office just released a report in October that showed that credit card companies are not only smacking consumers with outrageous late fees, but they are steadily increasing interest rates without what Washington deems is inadequate disclosure.
Now, for those who are dedicated readers, you should know by now that you need to keep a close eye on your card statements and especially the fine print on the credit card application itself. That’s the only way to keep on top of the game. But, of course, most people don’t bother doing that and, as a result, they are paying far more than they realize for the convenience of a credit card.
Now, I am a firm believer that consumers need to take control of their finances and be smart when it comes to using their credit cards. At the same time, I know there are situations where a person runs into trouble and taking the time to read every little piece of material that comes from the card issuer can take a backseat to other priorities.
Now, there are some things that I’d prefer that our government regulators would keep their meddling fingers out of. But credit card regulation as it relates protecting consumers is not one of them. Someone needs to make the credit card issuers more accountable and forthright with more reasonable disclosure on rates and fees instead of trying to always sneak one past the little guy.
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