Happy Holidays! The Credit Card Industry Is Raising Your Interest Rate!

Posted on November 22, 2009 by Eugene Melchionne Attorney at Law

SmirkHappy holidays indeed.  If you’re a credit card company.

According to this article in the Denver Post (“Credit Card Rates Soar Just Before Shopping Season“), credit card companies have been raising rates on unassuming consumers.  The credit industry is preparing for the major reforms on the unscrupulous practices they have been getting away with for years.

In some cases, according to the article, notices of rate increases have even been disguised as junk mail with the obvious hope of enticing the consumer to throw it away before reading the notice.

Why is this happening now?  Because Congress passed the Credit Card Accountability Responsibility and Disclosure Act of 2009 (conveniently nicknamed the “Credit CARD” Act) to protect consumers.  The law is set to take effect in February 2010, and of course credit card companies are doing everything they can to squeeze every last dime out of their customers before their wily ways are curtailed.

The important take-away from all of this is:  Know the terms of your credit card.  Don’t assume that everything’s the same as it has been.  Make sure to check:

  1. Your current interest rate.  It may have been raised.  It may be tied to a variable rate that fluctuates.
  2. Your monthly minimum payment.  Credit card companies have raised these as well.
  3. Your credit limit.  The one thing credit card companies have been lowering, of course.

If any of these have been changed without your knowledge, you could end up being on the hook for significant additional fees and charges.  Something you certainly do not need these days.

If you’re concerned about your credit cards and/or credit card debt, or if you’re contemplating bankruptcy filing in Connecticut, please contact me for a free initial consultation.  I’ll be happy to answer all of your questions and help you get back on the straight and narrow, financially speaking.

Credit card companies have their weapons and strategies, but the bankruptcy law gives average Americans, including Connecticut residents, special protections as well.  So get in touch if you’d like to learn more about them and how to make sure you receive their full protection under the law.

About Eugene Melchionne Attorney at Law

Eugene S. Melchionne, Esq. - Mr. Melchionne is a graduate of The University of Connecticut (B.A. 1977) and Drake University School of Law (J.D. 1980) where he received the American Jurisprudence Award for academic excellence.Since 1980, Mr. Melchionne has focused his practice in the areas of consumer bankruptcy, workouts and foreclosure defense in distressed real estate markets, real estate transactions, condominium law, commercial litigation, business organizations and probate. Prior to opening his office in 1990, Mr. Melchionne was associated with Grady & Riley in Waterbury, Connecticut and DiPietro, Kantrovitz & Brownstein, P.C. in New Haven, Connecticut. From 1990-1998, Mr. Melchionne was of counsel to Bender & Anderson handling that firm's complex litigation and trials. In addition to his practice, Mr. Melchionne was an adjunct professor at the American Institute of Banking and Teikyo Post University teaching bankruptcy, real estate, commercial and consumer law. Mr. Melchionne also advised the Corporation Counsel's office for the City of Waterbury on bankruptcy and foreclosure matters and mentored junior attorneys in that office. In 2005, Mr. Melchionne was appointed State Chair for the National Association of Consumer Bankruptcy Attorneys (NACBA). He acts as a liasion between the national organization and Connecticut attorneys who are members of the Association. He has fostered education of attorneys in the bankruptcy field and increased access of the public to bankruptcy relief in light of the law passed in 2005. In 2007, Mr. Melchionne was elected as Vice President of the Bankruptcy Law Network, an internet resource for consumer information on bankruptcy and now serves as its President. Bankruptcy Law Network has three sister sites, Credit Law Network, Debt Law Netowrk and Mortgage Law Network. Areas Of Practice: Consumer Bankruptcy Workouts & Foreclosure and Repossession Defense Real Estate Closings Honors: Super Lawyer Connecticut - 2007, 2008 Member of the Month - April 2006, National Association of Consumer Bankruptcy Attorneys American Institute of Banking Community Service - Ken Kovel Award, 2001 Teacher of the Year, American Institute of Banking, 1998 Pro Bono Representation of Indigent Clients, U.S. Bankruptcy Court, District of Connecticut, 1996 - 2002 American Jurisprudence Award 1978   Classes/Seminars Taught: Speaker - NACBA 2009 Convention, Chicago, IL Speaker - NACTT 2009 Convention, Boston MA Speaker - NACBA 2008 Workshop, Hilton Head, SC Speaker - NACBA 2008 Convention, Los Angeles, CA Speaker - NACBA 2007 Workshop, Las Vegas, NV Speaker - NACBA 2007 Convention, Philadelphia, PA Adjunct Professor - Bankruptcy, Real Estate, Consumer, and Commercial Law, American Institute of Banking and Teikyo Post University Past/Present Affiliations: National Association of Consumer Bankruptcy Attorneys American Bankruptcy Institute American Institute of Banking, Northwest Region Council City of Waterbury Corporation Counsel - Advisor, 1996 - 2000 Waterbury Bar Association - Chair, Committee on Bankruptcy -1998 Waterbury Credit Bureau, Inc. - Vice President, 1983 - 1985 American, Connecticut, and Waterbury Bar Associations Admitted: Connecticut, 1982 U.S. Federal Court, 1982 Education: Drake University Law School, Des Moines, IA, J.D. - 1980 University of Connecticut, Storrs, CT, B.A. - 1977 Past Positions: Bender & Anderson, Of Counsel, Hamden, Conn. DiPietro, Kantrovitz & Brownstein, P.C., New Haven, Conn. Grady & Riley, Waterbury, Conn.
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