The Finch Formerly Known As Gold

31 May 2008

A slightly lighter millstone

The Federal Reserve Bank has been making noises about new rules for credit cards, and I'm beginning to think that card issuers are seriously running scared. Evidence? The following unexpected changes to some of my own accounts:

  • The worst card I have, in terms of interest rates, has dropped that rate by a point for no apparent reason. And no, it's not a variable-rate card.

  • Two issuers have sent me notifications that they are abandoning the practice of two-cycle billing.

  • I pay these bills through my bank's online service. Late Thursday night, I ordered a payment to American Express: the normal cycle on this would be to debit my account Friday, and the payment would be posted Monday. Amex in fact posted the payment today, and sent me an email to that effect.

This is not to say that they're turning into the Good Guys all of a sudden; I have to figure that they'll point to little incremental changes like this and tell the Fed, "See? We really don't need any new regulations."

Update, 1 June: On the other hand, incidents like this won't help their cause.

Posted at 6:44 PM to Common Cents

TrackBack: 7:47 PM, 1 June 2008
» A Token Swipe At Credit Card Reform from Population Statistic
Apparently, the usual fee-gouging by credit card issuers has gotten so egregious that the Federal Reserve's push for stricter controls over what customers have to pay for carrying balances might actually have a chance of becoming reality. In resp......[read more]

Post a comment

Remember personal info?