Bank of America was the first company to agree to the rate freeze and Discover just recently agreed to do the same. However, not all companies are jumping on board. Several companies have been rushing in before the new consumer law goes into effect. Those companies that are not in agreement with the freeze cite the changes are due to the economic climate and are only interested in getting back the money owed to them. Consumers with good credit and no record of a missed payment on their account have reported that their monthly payment amount has doubled. The credit card company Chase changed the minimum payment amount for more than one million cardholders as recently as the month of August, seeking more money being paid toward the owed principal. These changes in the industry have made many credit cards unaffordable to consumer and have resulted in a number of bankruptcies. Chase does not have any plans to put a rate freeze into effect before the new law changes. Other banks, like Wells Fargo, also plan to hike the interest rate on credit cards.

Many critics say that credit card companies are out to get as much money as possible before the new law makes it too difficult to make changes. However, those in the industry contend that missed payments and spending over the credit limit by consumers have left them in a bind. There is also concern that if Congress should vote to move the date for the new law to go into effect in December of this year instead of February, there would not be sufficient time to update computers and be sure they are in compliance with the new laws.

Lawmakers have asked the Federal Reserve to start collecting information on current credit card practices so they could effectively monitor the changes after the new law takes place and be sure all are in compliance. Basic information such as credit card terms, the actual cost of credit for the consumer, and how much credit is available has never before been collected in a systematic way.

Consumers who have a credit card outside of Discover and Bank of America are encouraged to stay on top of their monthly statements and continue to analyze them for any changes that are being made. Budgeting for a higher credit card payment may be a good idea even if an increase does not go into effect in order to pay the card off faster. Even consumers who have an excellent credit and payment history with a card company may be subjected to rate hikes, penalties, and doubled monthly minimum payments.

Credit Card Companies Hiking Rates Before 2010 Changes was created by and is property of American Consumer News.