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NEW CREDIT CARD LAW–BOGUS OR LEGIT– May 20, 2009

Here’s the deal: Banks are basically saying that because they’re going to have to change some lending practices to comply with the bill, they’ll be facing greater risk.To cope with that risk, they say, they’ll have to turn the screws on their best customers — the ones who manage their finances prudently and pay off their bills on time — by possibly raising interest rates, scaling back rewards and imposing annual fees.

“Those who have managed their credit well and currently have very good credit card deals will find that card companies are limited in their ability to distinguish between them and those that have credit problems,” Edward Yingling, president of the American Bankers Assn., said in a statement.

“The result will be some subsidy from those that manage their credit well to those that have problems, affecting negatively the terms the former will receive.”

Read the full article at: http://www.latimes.com/business/la-fi-lazarus20-2009may20,0,4747280.column

My personal opinion, it’s bogus. What’s next? They start mandating that we all have to wear diapers, a stick a pacifier in our mouth too. Is the government implying that were incapable of managing our own finances? The government! They’re that last group of individuals I would take financial advice from.