Tarpley & Underwood
Financial Advisors, LLC
No Exploitation of College Students. College-age Americans will still be able to get credit, but within reason. Account limits will be either 20% of their annual income or $500, whichever is greater. So this market will grow less attractive for credit card companies.2
An End to Universal Default. If you make a late payment to one credit card issuer, other issuers will not be able to hike your rate as a consequence.2
Cardholder Permission for Over-limit Fees. Credit card companies now have to get your OK before they can process a transaction that would put your account over its limit.2
Why are Credit Card Companies Crying? Cut out all the nickel-and-diming, and credit card issuers will be left with lower revenues. So where are they going to get the money back? Think reduced rewards for cardholders. Think new and inventive annual fees.
Edward Yingling, president and CEO of the American Bankers Association, fears that now “less credit will be available generally, which means some consumers and small businesses will not be able to obtain credit cards at all, particularly younger people and start-up small businesses.” But Sen. Chris Dodd (D-Conn.), the driver behind CARD in Congress, thinks such claims sound “a little like Chicken Little.”5
These are the views of Peter Montoya Inc., not Tarpley & Underwood Financial Advisors, LLC, and should not be construed as investment advice. Tarpley & Underwood Financial Advisors, LLC does not provide tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your financial professional for further information.
Citations.
1 cnbc.com/id/30872387 [5/22/09]
2smartmoney.com/personal-finance/debt/tighter-credit-card-rules-pass-senate-milestone/ [5/22/09]
3 latimes.com/business/la-fi-credit-card23-2009may23,0,2309867.story [5/22/09]
4 cnbc.com/id/30873054
[5/22/09]
[5/22/09]5 cnbc.com/id/30872387[5/22/09]
[5/22/09] 
