From Florida to Illinois, credit card interest rates make headlines

From Cape Coral, Florida, to Chicago, Illinois, consumers continue to get enraged about credit card practices, and their stories are making headlines.

Information from AFFIL’s website has been cited in the above articles regarding the dubious business practices of credit card companies, especially focusing on obscene interest rate increases.

Now more than ever before, consumers are opening their credit card statements to find that their borrowing limits have been slashed while their interest rates skyrocket.  One Florida resident interviewed noted that his interest rate went from 9% to 29% in the span of two months as the result of a single late payment.

Stories like these are increasingly common and disheartening.   Even when the Credit Card Act goes into effect in February 2010 and imposes practical rules on many aspects of credit card lending, interest rates will be still largely unregulated and susceptible to random increases.  In order to fully rein in abusive and unfair lending practices, we need a Consumer Financial Protection Agency.  Write to your elected officials today and tell them to support a strong and effective CFPA!

(Photo: Matt Callow)