Consumers unlikely to shake debt management problems soon
Shoppers struggling with debt management issues have long faced the extra burden of dealing with various fees and high interest rates.
This could ease somewhat in the coming months as federal credit card reforms begin to take effect, placing new limits on the late fees and penalty interest rates that companies can charge. The pending reforms have in many cases led credit card companies to hike rates and take other measures to try to boost profits that are expected to be affected by the new reforms.
With that in mind, a recent report by CNNMoney.com notes that consumers could find themselves saddled with new debit card fees in the future, and that in 2010, debit card transactions are expected to rise to $1.64 trillion in purchases.
The report adds that lenders are also eyeing loyalty and rewards programs for debit card users, which have the potential to generate annual fees and other potential revenue.
Even after the credit card reforms take effect by February, lenders have probably not heard the last of the issue of how much they charge in fees and interest.
Various members of Congress have offered legislation in recent months to limit credit card fees, most recently this week. Congressman John Tierney, a Massachusetts Democrat, announced that he and two other lawmakers were proposing a bill that would limit credit card interest rates to 16 percent, among other things such as a $15 limit on late fees.
In announcing the legislation, Tierney noted that laws against usury have existed since the days of the Babylonian Empire and accused the industry of having seized an “opportunity to unfairly and arbitrarily raise interest rates across more customer accounts than ever before.”
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