Some Consumers Not Very Impressed With New Credit Card Rules

The new credit card regulations which will be coming with the partial activation of the Credit CARD Act on February 22 have long been awaited by credit card holders. The act, which was made into law last year, is aimed at reducing the risks that consumers take on when they get credit cards. While a lot of consumers are excited at the thought that regulators are finally trying to make the credit card industry fairer for them, there are others who are not that impressed with the new rules and are doing away with credit altogether.

While a bit surprising, it isn’t hard to understand why some consumers would prefer to opt out of credit cards even with the promise of consumer protection. For starters, credit card companies have rarely been fair with their dealings with consumers. That has created a lot of animosity among consumers, animosity which only increased when the credit card companies began introducing new abusive credit card term changes when the Credit CARD Act got signed into law.

As a matter of fact, eve since last summer, credit card companies have been busy changing their credit card terms as much as they can to circumvent the regulations of the Credit CARD Act beforehand. Thus, consumers saw their interest rates and fees go sky high, their credits cut and new fees getting added on their credit card terms. That is just to name a few.

The decision of a few consumers to get out of the credit card game completely underlines the fact that, when it comes to credit cards, the consumers are ultimately the ones who are in control. The credit card industry can change their terms as much as they want but if the consumers decide to walk away, then it would all be useless.

For consumers who are on the fence at the moment, who cannot decide whether to go for a credit-free lifestyle or to keep their credit cards, it is important to know that living without credit cards has its penalties as well. Credit cards can be very useful in times of unexpected financial need. Not to mention that credit cards build up credit scores which is very important when it is time to take out a loan or a mortgage.

Besides, even with the many holes that credit card companies have poked in the Credit CARD Act, it can still be a very helpful piece of legislation. For example, arbitrary interest rate changes will no longer be much of a problem. Credit card holders will have to remember to keep an eye on the fine print of their credit card terms, however, just in case.