Credit card reform doesn't mean consumers can relax and feel safe. Now people have to be wary more than they ever have before. The credit card reform act of 2009 has looked at a lot more underhanded credit card scams from financial institutions. So now those institutions are just trying harder to sign individuals up for credit card debt than they ever have. And they're looking for more ways to make money with new fees and higher late fees. Credit card users have to read the fine print on applications and read statements carefully when they receive them.

Resource for this article: With credit reform, credit card offers are getting more deceptive

Credit card offers

Credit card companies can be extremely hard to control. Besides a terrible economy, the credit card reform act of 2009 has credit card business marketing efforts going crazy. As reported by Synovate Mail Monitor, which tracks direct-mail offers, credit card spiels to U.S. households increased 29 percent during the first quarter of 2010. Some of the companies have doubled their efforts. Some of the largest ones can be considered predatory within the fees they come up with to charge consumers more.

Credit card frauds

You will find many creative credit card scams. Many say the late fees are there for risk. But now there is a new report from the Center for Responsible Lending shows that late fees have nothing to do with the credit card company's potential loss. The report discussed that late fees aren't pegged to the risk a borrower might default on their credit card debt. Rather than that, nine of the top 10 characteristics of credit card companies who charge high late fees are other unfair or deceptive practices. One is if a customer is late, the rate of interest goes up. The other is to have the deadline be early within the morning the day it is due.

Credit card late fees, and a lot more

Credit card late fees are just the beginning. According to USA Today, other tricks to view out for contain balance transfer fees, shorter introductory offer periods, and the fine print about annual fees on rewards cards.

All the new balance-transfer fees: Credit card companies offer percent introductory rates to transfer balances to a new card. But increasingly, they're charging fees of up to 5% on the amount transferred, with no cap. That means transferring a balance of $ 20,000 could cost up to $ 1,000.

Shorter introductory offers: Some credit card companies offer percent interest for up to 18 months, but a six months is becoming much more common. The credit card reform bill will not allow credit card companies from offering introductory rates for less than six months. Card holders must be realistic about whether they can pay off the balance before the offer expires. Any late payments will prompt the company to cancel the introductory rate.

Last you will find annual fees: More rewards cards are coming with annual fees, especially airline credit cards. These companies are making airline mile calculations more complicated. The fee may be worth the ticket unless it takes you years to get it. It's very difficult for average leisure travelers to justify the cost of a mileage card. Some of these great rewards cards will withhold rewards because of a late payment and demand a reinstatement fee to reclaim the rewards.

Anything seems to cost more with credit cards

Credit card offers are exploding because of the credit card reform act of 2009. But assuming a lot more credit card debt in a poor economy is a bad idea. Smartmoney.com reports that when the economy is struggling, the value of goods and services falls relative to the value of money. People with many debt are put between a rock and a hard place. As the price of everything falls, so does their value. When a product is charged on a credit card, the ultimate price paid for it rises as the product loses all of its value, and that doesn't contain interest.

Citations

Center for Responsible Lending responsiblelending.org/credit-cards/research-analysis/a-just-fee-or-just-a-fee.html USA Today usatoday.com/money/perfi/columnist/block/2010-06-01-yourmoney01_ST_N.htm Smartmoney.com smartmoney.com/Personal-Finance/Debt/carry-credit-card-debt-watch-the-dollar/