Cardholders may think they have more protection since the Federal Reserve put in effect the Credit Cardholders Bill of Rights. But once again, credit card issuers have found a way to have the cardholders pay more.
Credit card issuers such as American Express sent their cardholders letters stating that they will never be charged a fee if they go over their credit limit. Sounds like a great deal until you keep reading. While American Express is eliminating the over the credit limit fee, they are raising their interest rate on cardholders balances, purchases, and cash advances if a late payment is to be applied.
Also, card issuers have the right to cancel accounts without notice, even for the cardholders that have never been late, went over their credit limit, or even used their card. So passing the Credit Cardholders Bill of Rights might sound like the consumer is getting ahead, but they will be paying more as card issuers find more ways to penalize their customers. Especially since they can lawfully raise those interest rates or cancel accounts if they feel it would benefit the card institutions themselves.
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