(Thumbnail image: CBS)
Federal credit card reforms took effect this week to protect consumers from card companies' shady tactics. But as quickly as the regulations went into effect, card issuers followed with new fees, leaving experts and consumers wondering if the reforms had done anything at all.
We've got perspectives from CBS, Taipan Tipping Point Alert, CNN, The Louisiana Weekly, and American Public Media.
On CBS Money Watch, Money Magazine's Amanda Gengler says the changes are effective, even though they leave credit card companies free to raise future interest rates.
"Look, we understand we want the convenience of credit and we have to pay for that in the form of interest. Just enough with all of the "gotchas", all of the traps. You start with one product, you end with another product. And that's what this bill does. It just helps to make the process clear and transparent so you really know what you're getting into when you sign up."
And an editor of Taipan Tipping Point Alert, a investment news service, said the reforms may give consumers and Wall Street a boost.
"...the new changes are expected to help consumers feel more confident when negotiating or dealing with credit card companies. Moving forward, this may have a positive impact in future consumer confidence readings."
But not everyone is happy about the Credit CARD Act reforms. CNNMoney points out the credit card changes may hurt students hoping to get their first cards.
Detweiler: "The days of easy credit cards for college students are largely over."
Anchor: "New protections for those 21 and under mean many college students now have to prove that they can pay their balance in full or have a cosigner on the account."
A financial writer in The Louisiana Weekly cautions cardholders to be on the lookout for other fees.
"Although the worst pricing abuses have been addressed, cardholder delinquencies or other actions that violate card agreements will still allow many penalty fees to continue."
And an American Public Media "Marketplace Morning" Report says the changes won't change anything at all.
Vanek-Smith: "So to make up for that lost revenue, credit cards are taking a page from another industry. Ron Shevlin analyses banking products for the Aite Group."
Shevlin: "I would characterize what the future's going to look like here is the airlineification of the credit card industry. They've kind of nickeled and dimed consumers to death."
So do you think the the CARD Act reforms protect consumers from credit card companies? Or do they open new doors for the same old tricks?
Writer: Elizabeth Eberlin
Producer: Grace Meiners
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