New credit rules a double-edged sword - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

New credit rules a double-edged sword

Attorney Troy Blackwell Attorney Troy Blackwell

The so-called Credit Card Bill of Rights will likely be signed by President Obama by the end of the week.

It has already passed both houses of Congress. Local consumer law attorney Troy Blackwell says consumers should be happy by the limitations placed on Credit Card companies.  Companies will not be able to arbitrarily raise interest rates, although there will be no limits to interest rates for new balances.

On the other hand, Blackwell says, "if you limit the ability for them to get that reward, they're going to take less risks in making these loans to begin with and so there' a general tightening of the credit market."  Once the President signs the bill into law, it will go into effect nine months from that date.

 

 

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