Poll: 3 in 4 credit cardholders say their accounts are better off today

[ProSense]

Poll: 3 in 4 credit cardholders say their accounts are better off today

On 1st anniversary of credit card reform, consumers express satisfaction

By Connie Prater

On the anniversary of the law that ushered in the most sweeping changes in the history of the credit card industry, nearly three out of four Americans with credit cards say their accounts are better today than they were a year ago, according to a scientific poll conducted on behalf of CreditCards.com.

The poll found 74 percent of credit cardholders feel their accounts are in better shape today than a year ago, when President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act (commonly known as the Credit CARD Act) of 2009. Only a quarter of adults (26 percent) said their accounts are worse off.

"These results show that credit card reform is delivering important benefits for consumers," says Gail Hillebrand, senior staff attorney for Consumers Union, the San Francisco-based consumer advocacy group that publishes Consumer Reports magazine.

The random telephone poll conducted May 7-9, 2010, by GfK Roper Public Affairs & Media, interviewed 1,004 adults. The poll has a margin of error of plus or minus 3 percentage points on the full sample. (See poll methodology.)

The CARD Act -- signed into law May 22, 2009 -- dramatically changed the credit card game for both banks and consumers in the United States. Surprise interest rate hikes were eliminated and consumers were given the right to opt out of major changes to their accounts. Portions of the CARD Act are being phased in over a 15-month period, essentially to give banks time to revamp their billing and marketing operations to comply with the new rules. The first phase started Aug. 20, 2009, when 45-day advance notice of account changes became mandatory. The bulk of the consumer safeguards -- including interest rate protections for existing credit card balances -- began Feb. 22, 2010. The remaining measures, covering limits on gift card expiration dates and unreasonable fees, start in August 2010.

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[dflprincess]

1. I'd have more faith in the survey had if been conducted by an outfit like Consumer Reports

rather than a webstie that is designed to help a person find "the best credit card" http://www.creditcards.com/

And if the methodology had considered income.

[DJ13]

2. And if the methodology had considered income.

And interest rates on the accounts.

I seriously doubt that all those who had their interest rates jump from 10% to near 30% are happy.

[phleshdef]

3. The poll was conducted by GfK Roper Public Affairs & Media, the same people that do AP polling.

Take that as you will.

[ProSense]

4. It's good news;

therefore it's flawed.

[phleshdef]

5. Its not "good news" for "people who love bad news".

They've lost the plot and they just can't choose.

[Tarheel_Dem]

6. +1

[skipos]

7. My credit card bills are sure easier to understand and allow more time to be paid off

A definite improvement.

[ProSense]

8. Late payment drop shows impact of credit reforms

Late payment drop shows impact of credit reforms

By EILEEN AJ CONNELLY, AP Personal Finance Writer

NEW YORK – Consumers struggling to pay their bills in the first few months of the year got an immediate benefit from credit card reforms.

Late credit card payments fell sharply in the first quarter, and at least part of the drop can be attributed to the law that kicked in Feb. 22 curbing interest rate hikes and various fees.

The rate of borrowers who fell 90 days or more behind on their cards dropped to 1.11 percent for the first quarter, down from 1.32 percent in the 2009 period, according to credit reporting agency TransUnion. The delinquency rate was also down from the fourth-quarter of 2009, when it stood at 1.21 percent.

The rate hovered between .50 and .75 percent before the recession, and was at its highest in the first quarter of 2009.

Average credit card debt also fell in the first quarter, to $5,165. That's down 10.6 percent from $5,776 at the start of last year.

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[scheming daemons]

9. Thread is getting unrecced by people who just cannot stand to hear good news...

....messes with their world view.

[impik]

11. Honestly, i despise them as much as i despise the far right.

[Merlot]

22. and they may not be that far apart...

just because this website is called "Democratic Underground" does not mean that everyone on it is a democrat.

[demtenjeep]

12. yes, this seems to have become the Anti-Obama forum

it is quite sickening

[goclark]

15. Your seem is right on the mark

Right you are --- sad

[impik]

10. This getting unrecced??? What a f****g losers.

[ZombieHorde]

13. Good news. nt

[Peacetrain]

14. Very good news.. There is another OP about Consumer Confidence being higher

I think this has a lot to do with it!!

[LoKnLoD]

16. Except for...

Except for the extra 6 to 9% all the fucking banks jacked my interest rates two months before this went into effect. Chase jacked me from 19 to 26% . Never late, never missed a payment. Whoops the congress missed that little loophole.:sarcasm:

[tranche]

19. You should have called and had them lower it.

They tried the same thing with me and I called them and asked that they can have the raised interest rate, but I'd like a percentage descrease as a long time customer in good standing. They did it.

[RaleighNCDUer]

17. This is good news, for the banks -

which have apparently figured out that if they abuse their customers TOO much people will figure out how to live without credit cards.

As i have done for ten years.

don't miss that crap at all.

[tranche]

18. I gave this a rec.

I don't see how this can be a bad thing. It's good news. Front-page worthy? maybe not, but I'll help with the rec war.

[eridani]

20. Because they've shitcanned B of A and gotten accounts with credit unions instead

A good trend overall, I'd say.

[ProSense]

21. "New...restrictions will save...consumers from being charged at least $5 billion in fees this year"

Credit card overhaul cuts bank fees by $5B

By Kathy Chu, USA TODAY

New credit card and overdraft restrictions will save U.S. consumers from being charged at least $5 billion in fees this year alone at the largest U.S. retail banks and credit card companies, a USA TODAY analysis reveals.

The analysis — based on institutions' own estimates — comes during a year when new rules are kicking in to address unfair credit card rate increases and steep bank overdraft fees. It highlights the sizable dent these rules will have on an industry blamed for pushing consumers deeper into distress during the recession.

In recent years, banks made it easier for consumers to overdraw their bank accounts and raised credit card fees and rates. As consumer outcry swelled in the recession, Congress passed a credit card law and the Federal Reserve issued a regulation to crack down on banks' aggressive overdraft policies on debit cards.

Lawmakers hope the restrictions will mean much-needed savings for consumers, boosting spending and the economy. Indeed, new data show the measures are their "own little stimulus for the economy, keeping billions in the pockets of consumers rather than in profits gained from deceptive practices," says Rep. Carolyn Maloney, D-N.Y., co-author of card reform signed into law last year.

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[Sherman A1]

23. My accounts are exactly the same

paid off every month.

[diane in sf]

24. I found it immediately helpful--they have to apply your payments to the highest

interest charges on your cards. I have nothing now over 9% and most of my debt is under 5%--which is like being paid to borrow money.

[IndianaGreen]

25. Have the banks reduced their credit card rates?

You know, the ones they increased just before this law went into effect.

[stevenleser]

26. Yup, all of these good policies are having an impact. The pressure on the haters must be immense

the dissonance between what the haters are saying about Obama and reality is growing.

[customerserviceguy]

27. The CARD act

is just a coincidence. You pretty much have two kinds of people in this country, those who have filed their bankruptcy and no longer have card debt on their backs, and those who simply have paid down their balances to the point where they can live within their incomes, even if said incomes are reduced.

I'd venture to guess that the latter group is predominant in the 3 out of 4, I know I fit into that category.

[HughMoran]

28. Hard to believe

I've never heard of a poll that says a bill initiated by the government led to something actually getting better. Is this the onion?