Fed Says Banks Eye Tighter Terms On Credit Cards

[Purveyor]

Source: Associated Press

(11-09) 11:29 PST WASHINGTON, (AP) --

Banks expect to tighten terms on credit cards in response to a new law that aims to protect consumers from sudden rate hikes, the Federal Reserve said Monday.

A quarterly survey by the Fed found that many banks expect to increase rates, reduce credit limits and raise annual fees for both prime borrowers — those with sound credit histories _as well as more risky "non-prime" borrowers, who have tarnished credit. Banks also expected to raise minimum credit scores for non-prime borrowers, the Fed said.

Banks already have been pushing through rate increases in anticipation of the new rules. Because of that, the House recently approved legislation to speed up the law's effective date and have the provisions take effect immediately, although prospects are dim for Senate passage.

Most of the new credit card provisions are slated to take effect on Feb. 22.

Many people and businesses are still having trouble obtaining loans, a force that is likely to restrain the economic recovery.

It's a delicate dance for policymakers in Washington. They want banks to boost lending, but no one wants a return to the lax standards that many blame for contributing to the worst financial crisis since the 1930s.




Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/1...

[Zoeisright]

1. The lax standards were no regulation on Wall Street.

Blaming the consumer for the Bush Depression is just scapegoating.

[Demeter]

2. Let them get out of credit cards entirely

They will not be making money off them any longer, anyway. People without income cannot pay.

[safeinOhio]

3. The best part about credit cards is......

because of Federal regulations you are free to shop across state lines to get the best deal. Now for the bad part. They all moved to one state that has no regulations on credit cards
Now we hear about how much Americans will also save on health insurance when they can shop across state lines. whoopee.

[Dr.Phool]

4. The whole country is run by banksters, Insurance fraudsters, and assorted crooks.

Tell me again, why I'm still in this moran infested backwater.

[Arctic Dave]

5. Yeah, blame the consumer.

"It's a delicate dance for policymakers in Washington. They want banks to boost lending, but no one wants a return to the lax standards that many blame for contributing to the worst financial crisis since the 1930s."

If people didn't HAVE to rely so much on credit cards but were able to purchase what they needed with real wages. But, that would be bad for all the people at the top who make money off the backs of the credit card holders while doing NOTHING.