With the economic pressures by the ongoing recession, some credit card companies are quickly hiking interest rates and reducing credit limits to protect themselves from the rising defaults. People with good credit may find that their credit cards are less flexible and more expensive.¹

If you find that your credit card company has hiked your rates or reduced your credit limit, consult your credit union for assistance. Abbey Credit Union’s credit card policies have not changed. Consider your ability to pay off the balance or transfer your balance. Some of our members are finding the best way to manage their debt is by refinancing their mortgages or consolidating debt with home equity financing.

According to the Associated Press, President Barack Obama said he is determined to get a credit-card law that eliminates the tricky fine print, sudden rate increases and late fees that currently allows credit card companies to make these changes legally. Both the House and the Senate are pursuing bills to give consumers greater protections as an expansion of new rules slated to take effect next year.²

Congressman Maurice Hinchey (D-NY), Congressman Peter Welch (D-VT), Congressman John Tierney (D-MA), and Congressman Jim McDermott (D-WA) today announced that they will offer an amendment
to the Credit Cardholder’s Bill of Rights bill in the House this week that would cap interest rates on all credit cards at 18 percent. “Credit card companies are exploiting the dire economic situation by increasing rates to exorbitant levels, which further compounds the financial woes of many Americans and drives them deeper into debt where they become even more beholden to the credit card companies and their abusive practices,” Hinchey said. “Enough is enough when it comes to skyrocketing credit card rates.³

Abbey Credit Union’s credit card rates are low-rate, no hassle, and simple terms. Credit unions tend to have better rates and more consumer-friendly terms because they’re not in it for the profits. Abbey’s credit card rates continue to be based upon credit score and credit qualification, not on economic pressure.
At Abbey Credit Union, we understand life experiences, and our members won’t wake up to a surprise credit card interest rate increase.

At Abbey Credit Union, we understand life experiences, and our members won’t wake up to a surprise credit card interest rate increase.

¹ Kathleen Ryan O’Connor, CNNMoney.com contributing writer
² Ben Feller, Associated Press
³ WBNG News, April 28, 2009