Credit card companies are increasingly putting the clamps on their customers. Lenders are taking a wide range of steps to mitigate their risk as unemployment rates tick up and the number of delinquent borrowers grows. Besides cutting credit limits, card companies are raising rates and fees, making the due date for your payment at holiday or a Sunday on the hopes that maybe you’ll trip up and get a payment in late, and suspending offers such as zero percent balance transfers.

They are also making rewards programs less rewarding and shutting down inactive accounts, even those who’ve never missed a payment, industry analysts and watchdogs said. The retrenchment, which follows years of lavishing Americans with offers and ever-increasing limits, is squeezing consumers at a time when they have already lost other avenues for borrowing, such as home equity lines of credit.

credit card companies

Credit card companies are already in compliance with the credit card bill of rights. Credit card companies are now required to provide cardholders with a minimum 45 days notice of any pending interest rate increase, thereby allowing consumers sufficient time to consider their options. They found that since the credit card bill of rights was first voted on in congress last December 2008, credit cards have been adopting some consumer-friendly practices, but that they’re ignoring practices that make them a lot of money.

The credit card bill of rights also states that consumers should get fair allocation of payments to different balance rates. Often the bank charges you multiple interest rates for different portions of your debt, (maybe you had a low introductory rate at first and then it went up). Most banks apply your payments to the lowest interest items first so the higher interest part of your debt lasts longer and they can earn more money off you.

Credit card companies are squealing than any restrictions on them will hurt the economy, drive prices up and lead to financial armageddon or worse. Most cardholders know that they will be hurt more unless something changes. For many, credit cards have gone from a luxury to a necessity to a noose. Millions have become prisoners of debt, almost as if they are serfs and as if capitalism is going back in time to feudalism. The way these companies exploit customers is legendary and has been tolerated for too long as many media outlets report.

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