Posted by Todd Zywicki:
The Effects of the Credit Card Bill:
http://volokh.com/archives/archive_2009_05_17-2009_05_23.shtml#1242950966
Odysseas Papadimitriou [1]has an informative summary of the likely
effects of the credit card bill on his "Wallet blog" at cardhub.com,
both the costs and benefits:
In short the credit card legislation will significantly change the
way credit card companies conduct business. Relative to the current
landscape and once credit card companies reach full compliance
under the new law, consumers will see smaller credit lines, higher
interest rates, higher membership fees and fewer 0% offers. Rewards
offers will likely stay the same.
While the effects of the legislation we�ve outlined here may seem
wholly negative, we strongly believe that the long term effects
will result in a net benefit for consumers. This landmark
legislation eliminates �gotcha� rate hikes and fees and will allow
consumers to plan the selection and management of personal credit
lines, without the worry of unforeseen surprises popping up along
the road.
References
1. http://www.walletblog.com/2009/05/the-final-credit-card-bill-your-wallet/
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