NYT: Banks put squeeze on credit card customers

Ahead of the new Credit CARD Act, the New York Times reports sobering news on bank credit card practices:

About 50 percent of the banks responding to the Fed’s survey said they were increasing interest rates and reducing credit lines on borrowers with good credit scores. About 40 percent said they were imposing higher fees. The banks also said they were demanding higher minimum credit scores and tightening other requirements.

…A study by the Pew Charitable Trusts, released late last month, concluded that the 12 largest banks, issuing more than 80 percent of the credit cards, were continuing to use practices that the Fed concluded were “unfair or deceptive” and that in many instances had been outlawed by Congress.

Consider all this a last-ditch effort by big banks to get your money – before the CARD Act stops them from these deceptive and gouging practices.

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