Law to Protect Public from Credit-Issuer Practices

Things were supposed to get better for credit card customers, beginning Thursday. That's when the latest law to protect the public from credit-issuer practices that are everything from annoying to unethical takes effect.

Yet, empirically speaking, it's clear that the unintended consequences of the new law are that credit issuers are unleashing trouble on unsuspecting consumers, and that the pace of change is likely to pick up.

As a result, the public will quickly learn the flaws of the Credit Card Accountability, Responsibility and Disclosure Act (widely known as the Credit CARD Act) -- the first provisions of which kick in this week , FOXBusiness reports.

Meanwhile, the robo call might start off like this: "There are no problems currently with your account; however it is urgent that you contact us concerning your eligibility for lowering your interest rates to as little as 6.9%."

Or the recorded voice might say: "This is our final attempt to reach you since you've not responded to our other calls to discuss your credit card debt."

Burns noted that the telemarketers may claim to be with "Card Services" or "Card Holder Services."

Some consumers complained that it sounded like the credit card company was trying to contact them, Detroit Free Press reports.

"It seems [banks] are getting their shots in while they can," said Greg McBride, senior financial analyst at Bankrate. The sweeping actions by banks -- which must now give customers at least 45 days' notice when making a significant change -- signal a profound shift in the way banks and consumers deal with plastic. Bankers and others have argued that the new law will further crimp consumer spending by leading to reduced access to credit and higher interest rates for cardholders, thus hurting an economic recovery , Los Angeles Times reports.

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