Bankruptcy Indiana

"The Credit Card Bill of Rights" is what they've nicknamed the latest legislation signed into
law by President Obama just two weeks ago.  The new law is meant to offer consumers relief from credit card lenders' abusive practices.

• No more double cycle billing (charging interest based on a two-month average balance)
• No more retroactive interest rate hikes on what the cardholder already owes
• No more hiking interest rates on short notice (minimum 45-day warning required)
• No more charging fees for paying bills online or by phone
• No more fine print (written materials must be no smaller than 12-point type)
• No more credit cards can be issued to those under the age of 18. (Under 25? You'll need to pass a certified financial literacy course before getting a card)

So what's the problem here?  The Credit Card Accountability, Responsibility, and Disclosure Act doesn't take effect until February of next year. Not only will that be too late for many consumers already teetering on the brink of financial "death by credit card", but card issuers are likely to use the next nine months to make credit a lot more restrictive for everyone.

"Brace yourselves," writes Steve Watenberg in the Columbus Dispatch.  "We're going to see a lot more interest rate hikes between now and when the legislation takes effect."  Watenberg expects continued, often arbitrary, jumps in interest, higher fees for balance transfers and cash advances, and a reduction of rewards and credit limits.

It's the reduction of credit limits that is likely to drive many consumers and small business owners to the point of bankruptcy, I fear.  For those struggling with job loss and loss of medical benefits, reduced credit availability and increased credit costs may prove just too much to handle.  The "pushback" by credit card issuers is likely to push many consumers over the financial edge!