Credit Card Abuse, Fees and Rate Hikes
Despite recent laws passed to protect consumers from credit card abuse, abusive practices reportedly continue to pose a problem. Some abusive credit card practices include credit card rate hikes, credit card fraud, credit card late fees, credit card overlimit fees and credit card annual fees. Some credit card companies are also accused of illegal marketing practices.
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Credit CARD Act
Under the Credit CARD Act, companies cannot automatically allow a card to go overlimit and cannot raise interest rates for one year after an account is opened. Once the year is up, lenders must give the cardholder 45 days' notice before issuing a rate hike.
Credit Card Abuse Practices
Other companies have taken to increasing balance transfer fees, charging cardholders if their accounts are not used frequently enough and eliminating grace periods on purchases.
Historically, credit card abuse lawsuits involved predatory practices such as unannounced rate increases, unannounced credit reductions, overlimit fees triggered solely by annual fees, and pre-approved and other special offers that are not honored. Some of these predatory practices are prohibited under the Credit CARD Act, but consumers should be aware of their rights to ensure credit card companies follow the CARD Act.
Credit Card Antitrust Lawsuit
Having the option of using credit cards that offer lower merchant fees could result in lower prices for consumers.
Credit Card Abuse Legal HelpIf you have been a victim of any unfair practices by your credit card company, including substantial rate increases, unfair penalties or broken promises, and would like to take a stand by participating in an action against them, please click the link below to submit your credit card complaint to a concerned lawyer who will review your claim at no charge. There is also a special need for certain matters for California residents who can act as class representatives.
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