Fall Back, Credit Card Rate Forward
That's right folks, be ready for higher credit card rates from one of your favorite lenders. Wells Fargo announced its incumbent 3% credit card rate increase on consumer credit cards ahead of anticipated legislation that would limit rate hikes. In its statement Wells Fargo assured the public that the rate increase comes after a long deliberation and that they will be prepping customers for the change, which is set to go into effect November 30th 2009. To balance the increase, Wells Fargo will phase-out over-limit fees for customers who spend past their credit limits.
Why so much talk about rate hikes at the end of November when we are barely rounding out the first week of October? Federal law requires lenders to give consumers 45-day notice before increasing interest rates.
So, consider yourselves warned!
While Wells Fargo has established itself as the bank for small business, it has managed to capture the title of 8th largest lender for U.S. credit cards. Others in in the top ten list include Bank of America, at #2, which reportedly will not raise credit card rates until the passage of the Credit Card Accountability Responsibility Act legislation takes effect.
- Wells Fargo Will Raise Credit-Card Rates Ahead of Law (Bloomberg)
- Wells Fargo, the Small Business Bank (FindLaw's Free Enterprise)
- Choosing a Credit Card (FindLaw)
- Credit Card Holders' Bill of Rights: What it Could Mean for You (FindLaw's Law & Daily Life)