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A compromise on credit card reform some people are asking your fifth final -- really gonna make any difference at all but I CSS.
And may not at eleven as the founder and chairman of credit dot com and he joins us now.
Adam welcome back thanks -- get a little less heated last looked.
You know listen we look at this and and we in everybody's been burned as we talked about before but it is congress really get -- -- to make meaningful change that would impact.
Our viewers' lives in the way they use.
And are affected by credit card companies.
Well to some extent it's gonna add greater fairness into the system and the movement more certainty.
And give people a little bit more time in order to make payments and slow down -- certain rate increases.
Give the American consumer a little bit more money because obviously the more money that you pay for money is less money that's available to spend and we all know we have to kind of spend our way out of this -- But fact of the matter is a lot of things really won't necessarily change but it's a start.
And it's just very important to take that first -- Let's walk through a couple of the I think I guess the stuff that's in the proposals.
Right couple things are very good I mean ending this run interactive.
Raising your rate nonsense right.
You got a bit -- ten grand you paid 6% on it you pay late all the sudden you're paying 21% and everything correct but the problem dismay in that well you won't end.
That necessarily what it will end is where you've done everything right you've made more than the minimum payments -- on a pattern and all of a sudden out of -- where they announce to you that they just increase your rate by ten full percentage points.
Either because of universal default something may have done some place else or they re pricing in order to take into account the economy.
The new bill will require depending upon which version ultimately comes out.
Either of you is they can't raise your rate for at least until you're thirty days late in the senate bill until you're sixty days -- And even then.
You have a six month period where if you prove that you are solid and responsible Payer.
They would return your rate to what it was before it was raised because of this -- OK -- that's and that's a start and then I think most people would have greeted that's good news now the bitten literally the fine print is going to get bigger.
But it just means the pages you get are going to get bigger raising gonna become more symbol or the print just gonna get bigger which is not gonna don't think as you and I know.
People don't read that well read it well that's the biggest promise it doesn't matter the prince boulder bigger brighter we hit the headlights and I can read if you don't read it.
It doesn't mean anything.
So the fact is that there is a drive on making it simpler because again 27 grade English is a little bit difficult for must be -- I had had a test -- so right I mean even with a lot of re look at the stuff and I don't -- have no concept what they're talking I don't know whether the people who wrote it have a concept of what they actually meant when they wrote it.
But but again this goes back to the whole question of financial literacy and the fact that consumers have to look and credit as a portfolio.
Then they have to manage it as if it -- -- portfolio.
And that hopefully one of the by products of this disaster we've gone through is a greater.
Emphasis on financial I think that's what you and I debated last time was sort of these sort of lead the education system why we know this very quickly though.
Will it change people's be even if we do the things that better proposed will it change our behavior.
With regards to credit by -- you can see that can.
Tumors are now whether it's the forced march to -- or it's the or it's it's actually people responding in a responsible way one way or another debt is starting to come down.
And people are using debit cards -- bit more than credit cards and people are taking more responsible approach to things.
And also things like convenience checks which -- -- crack cocaine and credit.
Have slowed down.
So I think as part of a process.
I think it will make things better but some things won't change they'll still be able to shut your account when they want to know this will be able to cut here you know -- -- cut your.
Credit line when they want we'll we'll take it will take a little more power but we can't take everything -- eleven at credit dot com thank you -- -- and thank -- --
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