Santa Ana, California -- Financial Crossroads, a California-based debt settlement company, has recently weighed in on impending legislation that will force lenders to alter credit card lending practices, eliminating unannounced rate hikes and late fees. Financial Crossroads applauds the new legislation that will protect credit consumers, but at the same time, warns of even further difficulties in obtaining credit for individuals and businesses in the future.
“The legislation being proposed by the House and Senate is a double-edged sword,” said Liz Baker, co-founder of Financial Crossroads in Santa Ana, California.
“It will protect credit consumers from abusive lending practices, but will also force lenders to further tighten their standards, denying individuals access to credit in the future,” she added.
The measure, known as the “Credit Card Holders’ Bill of Rights,” will take effect one year after enactment. Having already passed through the House, the legislation is expected to soon be approved by the Senate and then signed into law by President Obama in the near future.
With millions of Americans falling behind on their credit card payments, Financial Crossroads California says the proposed measures will help protect consumers from excessive fees and penalties assessed to cardholders who are already having a hard time making their monthly payments. The bill will also make it illegal for credit card companies to engage in “double-cycle billing.”
“This is something that is much needed for consumers,” noted Baker of Financial Crossroads. “But it will also change the landscape of the credit card industry for the foreseeable future.”
Opponents of the bill say the new law would mount further pressure on lenders who are already reeling from the recent credit crisis. Anything else that contributes to their losses could be “the final straw.”
“We will have to wait and see what kind of effect this has on the credit card industry,” said Baker. “Either way, we feel the impact will be significant.”
For more information on Financial Crossroads California, visit http://www.financialcrossroads.com/
About Financial Crossroads California
In the debt settlement industry since 2001, Financial Crossroads California is a member of The Association of Settlement Companies (TASC) and offers solutions and programs to Americans looking to get out of debt. With its main offices in Santa Ana, California, Financial Crossroads uses a multi-faceted approach to assist clients to become debt-free in a relatively short period of time.
