The CARD Act went into effect this year with the intention of ending “tricks and traps” that credit card companies had been building into their fine print. For example, payments would be due on Sundays or holidays when payments were not accepted. Payments would then be credited the next day, with all of the requisite interest, penalties, and late fees. I was a strong supporter of the CARD Act on these pages despite the criticism that credit card companies would find new types of tricks and traps. I knew that the CARD Act would only be a cure for the existing abuses of the industry, not a vaccination against future abuse. Like an especially malignant disease, the banking industry is destined to evolve new ways of defeating yesterday’s medicines.
The Latest Tricks and Traps
The Wall Street Journal has the scoop on how banks are changing to defeat the spirit of the CARD Act. They start out by citing the increase in annual fees. I have no problem with this as annual fees are not tricks and traps. Sure, I don’t want to pay them, but at least these fees are clear, honest, and up front, like the recent announcement of the increase in annual fee for the vaunted Starwood Amex. On the other hand, I a