Keeping an Eye on Deceptive Credit Card Practices

Don Hicks says he always pays off his minimum on his chase credit card. So he was floored when he opened his statement earlier this fall and found that his minimum payment requirement had more than doubled.

“I retired just recently, and I'm on fixed income and we had budgeted for the $150 payment, and suddenly we're hit with $350 and it makes a big difference."

What happened to hicks is one of a slew of tactics banks are taking nowadays -- including raising interest rates and issuing new fees.
It's all in anticipation of a loss of revenue when the final phase of the credit card act goes into affect in February.

“Unfortunately there are some repercussions that are coming out with the rate increases, so consumers just need to arm themselves with knowledge and know that it's not their fault,” says Carrie Grube Lybarker with the South Carolina Department of Consumer Affairs.

Consumer Affairs says the best way to do that is to read the fine print. All too often we throw out the extra pages of our bills but nowadays it's more important than ever to look for changes.

So will the card act protect us from what some are calling unfair and deceptive practices?

Not in all cases according to Grube Lybarker who says the law does have a loophole when it comes to credit card companies giving notice when they close accounts

Certain accounts are not being offered anymore, certain terms are not being offered anymore so the credit card companies are scaling back on the different credit cards that they have out there and that's not included in the 45 day notice requirement.

But she says protection measures like account reviews every six months that allow card holders to improve their rates -- and protection for young consumers -- who will need proof of funds or a co-signer -- outweigh any deceptive practices we see today.

"It's a little ugly out there right now, but we definitely see brighter skies ahead."

As for hicks, he has cancelled that chase account and is working with the Consumer Affairs bureau to get a better deal to pay off the loan.

If you have an issue with your credit card company making deceptive changes, you can contact Consumer Affairs at 1(800) 922 – 1594 or via their website www.scconsumer.gov