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Restore the 30-day grace period. In 1990, you typically got 30 days between the day your statement closed for the month and your due date. Even with snail mail, that was plenty of time to get your statement, write your check and mail it back. Today's 20-day grace periods all but require you to use electronic statements and online bill pay if you want to avoid late fees.
We need more breathing room. One attempt was made in the last session of Congress. The Credit Cardholders' Bill of Rights would have required issuers to mail statements 25 days in advance of due dates (the current minimum is 14 days), but the measure died in committee.
Due times also need to be halted. In a 24/7 world, a due date is enough.
"Fixed" means "fixed." I'll use language from the credit card bill of rights: "Fixed . . . may only be used to refer to an annual percentage rate or interest rate that will not change or vary for any reason over the period clearly and conspicuously specified in the terms of the account." Every other type of lender seems to understand what a fixed rate is; only credit card issuers have been unclear on the concept. It's time we fixed it in their minds.
No more "any excuse" re-pricing. Several issuers, including Chase and Citibank, have abandoned universal default as Congress started taking a closer look at credit card practices. Universal default needs to be banned altogether, and issuers must be forced to make it crystal clear what actions on cardholders' parts can lead to a rate increase. No more deliberate vagueness about "actions that lead us to deem you less creditworthy." Issuers should give specifics: If you do this, then we do that.
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Instead of giving 15 days' notice of any changes in rates and terms, I endorse the bill of rights' requirement that cardholders be given 45 days' notice, plus the option to close the account and pay it off under the old terms.
In fact, I think the bill was a darned good start on helping us turn back time on the credit card companies. If you agree with me or want your voice to be heard, e-mail your congressional representatives now.
Find your lawmaker in the Write Your Representative directory. The sample below is a good start, but feel free to add your own frustrations. And don’t forget to sign.
Please support the Credit Cardholders Bill of Rights. Consumers' rights need to be protected and credit card issuers' worst practices should be banned. Thank you.
This is your best shot at changing the system. Use it. Credit card issuers are overdue for some change.
Video on MSN Money
The credit crunch -- on youWhen it comes to banking, a 'credit crunch' refers to when banks cut back on lending because of past losses. But now credit card companies are 'crunching' customers -- raising fees, cutting limits and more.
Liz Pulliam Weston is the Web's most-read personal-finance writer. She is the author of several books, most recently "Your Credit Score: Your Money & What's at Stake." Weston's award-winning columns appear every Monday and Thursday, exclusively on MSN Money. She also answers reader questions on the Your Money message board.
Published March 20, 2008
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