Group of consumers has tried for years to encourage credit card industry to change the charge interests. Banks, financial institutions, and business companies used a practice such as charging interest to card holders. The interest occurs if there is no payment on monthly basis to the lowest purchase. Resulting to cardholders in paying a large amount of interest rates until balance is fully paid.
The credit card bill also known as the consumer’s bill had failed in the Senate hearings. It was a strategy that consumers must do in order to obtain changes in the business industry. The Office of Thrift and Supervision along with consumers protest was the basis of the said bill. The result was a failure in the part of the consumers during the legislation in 1988. But, upcoming changes will eventually rule out in the coming years. Even if the companies are paying the lobbying groups there will be protest among the consumers to pass this bill in the Senate.
If there will be changes in terms and conditions from various companies it can result to benefits in the part of the consumers. That can be of great help to the cardholders that strive in the present economy. The new consumer bill can guarantee the removal of banks and financial institutions ability to charge consumers with retroactive interests. It was a practice by business companies to raise interest rates on each account that only results to cardholder’s inability to pay retroactive interests. It only endangers the consumer from repaying fully of their loans. There must be changes such as passing legislation laws prohibiting companies to obtain this kind of rights.
The upcoming changes in the credit card industry provisions focus on banks inability to change terms and conditions of cardholders’ rights within twelve months after issuance. Groups of consumers had studied, reviewed, and believed these provisions will eventually stop the switching tactic that occurs in lending in the past. The use of credit had affected commercial and lending loans as it was persuaded to consumers that are cardholders. There may be advertisements and mails that persuade cardholders to go through loans that include mortgage loans, auto loans, and credit cards. Although it can attract costumers there may be a slow down in lending and commercial loans. The recovery of the economy and the upcoming changes in the credit card industry are needed by cardholders while taking advantage of its benefits.