Back in August I wrote about mandatory changes in the hideous tactics credit card companies use that trap consumers. Today, the second phase of these mandatory changes goes into effect.

I’ve had a personal interest in these changes as both Ronda and I got caught up in the traps that are now banned. Both of us spent two years wrapped up in a web that neither one of us felt was warranted and fought the sudden and drastic changes in terms, payments, and interest rates.

The Credit Card Accountability Responsibility and Disclosure Act happens to be 1,400 thick. I (nor you) should spend that kind of time reading, but I did find some of the bullet points from a Time article posted yesterday.

Here are some of the changes that go into effect today.

• Require credit card companies to tell customers when they plan to increase rates or other fees.

• Mandate standard payment dates and times, to keep companies from tripping you up into late charges by moving your due date.

• Limit fees, like charges for exceeding your credit limit or paying your bills online or over the phone.

• Mandate that monthly statements clearly show how long it would take to pay down your balance by paying the minimum.

• Curb interest rate hikes by prohibiting credit card companies from retroactively jacking up rates on existing balances until the customer is 60 days behind on payments.

• Forbid credit card companies from automatically enrolling customers in often-pricey programs that offer the option to charge beyond credit limits.

• Crack down on marketing campaigns targeting college students and other young adults, requiring anyone under age 21 who wants a credit card to either demonstrate the means to pay down their debt alone, or get an adult to co-sign on the account.

• Ban the practice of double-cycle billing, in which your creditor uses your average balance over the current and previous billing cycles rather than the previous one — a trick that can wind up costing you a pretty penny.

The biggest change that I’m sure will shock some people is that your credit card statements will now include a summary of not only how long it will take you, but how much money will be wasted in interest to the banks for making minimum payments. I’ve seen these examples years ago, and when people see that it will take 30 plus years, (even if they don’t charge another dime on the card) it will wake most poeple up.

I said it back in August, and I’ll say it again – I’m not a big fan of big Government. There are times when I’ll side with the Government stepping in however. While I hadn’t checked on a status for some time, (due to this mess being behind me, and finally agreeing to terms that were acceptable) I also found that one of the most obnoxious and cut throat collection firms in the industry is now out of business.

Thing is…if the Banks would have been abiding by these new rules in the first place, none of our ordeal would have ever materialized. We never argued that we owed the money – just the sudden interest hikes and the manipulation of our due dates that prompted the increase.

We did it the hard way – and forced to make some very tough decisions along the way. Better late than never I guess. These new rules and requirements will save others from the nightmare we had to endure.

It’s the way they should have been doing business to begin with. Otherwise, we wouldn’t have cut them off the way we did.

I’m just pleased to see these much needed changes and the elimination of tricks and tactics that put us in the situation we found ourselves. We can tell you from personal experience, they were much needed and warranted. 

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I have to wonder why nobodies talking about AmEx becoming a bank holding company? From what I’ve read about this in Travel Weekly, this idea of any Travel Agency being owned by a bank would be considered an unfair business advantage.

AmEx is asking to borrow $3.5 billion which means that the largest travel agency in the world will now be owned by a bank. Shares of American Express fell $2.35, or 10.5 percent when news first broke, to $20.05 November 11th. Shares continue to fall as the stock closed at $19.64, its lowest point since 1998.

“For decades, from the late ’60s into the ’90s, travel agents fought to keep state and federal banks out of the travel business, regarding them as sources of unfair competition. Agents were often concerned about the competitive impact of cross promotions, whereby a bank might offer a travel benefit to someone opening a new bank account.”

All this fighting, for now at least, seems to have been forgotten. It’s been more than a week, and while I’ve been attempting to follow this story, there’s been not one word spoken about this on any forums or boards I could find. Even after this stories been printed.

Stephen Feeley, director of communications for American Express Business Travel, said the change in status would have no effect on the company’s travel agency business. “It will be business as usual.” However the tax dollars given to American Express could produce an unfair advantage over any other agency, like possibly credit needs to expand, and that I’m sure won’t sit well with the rest of the industry.

American Express, which operates two banks in addition to its travelers check, credit card and travel businesses, won approval to become a bank holding company subject to regulation by the Federal Reserve.

Joanna Lambert, vice president for corporate communications for American Express Co., declined to comment on the report or even confirm that an application had been made or American Express would “build a fence” around a loan to the company to prohibit the agency from having access to the billions it “bank” now has access too. In addition, there’s a concern about the competitive impact of cross promotions of how a bank might offer a travel benefit to someone opening a new bank account.

Yet, not one word from even one travel agent.

Nice to know some have their priorities straight.

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