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Credit Card Reform is FINALLY Here! President Obama Signs New Credit CARD Act!

President Obama signed into law today the new Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009.

This is really good news for consumers, and perhaps not so good news for the credit card industry.

This new law eliminates a lot of the abusive practices credit card companies have been getting away with for years. Things like confusing contracts, miscellaneous and mysterious fees, shifting payment deadlines, changing terms, and interest rates rising out of the blue.

Thank goodness and about time!

During the press conference, President Obama made it clear that irresponsible credit behavior is not excused or condoned; and discussed how this legislation will help those who try to be responsible with credit, but may end up trapped by the increased used of their credit cards as the the result of a job loss, health insurance not covering expensive medical bills, a mortgage payment that jumped sky high, or a small business financed on credit cards that's suffering from the poor economy.

As it stands now, even as a responsible credit card user, you can be charged interest even if you pay your bill on time; your interest rate can be increased on outstanding balances even if you aren't late with a payment; and you can be forced to pay down your debt with the lowest interest rate first instead of the highest, which just makes it harder to get out of the hole.

President Obama also points out the fact that although credit card companies provide a valuable service, they should do so while upholding certain standards of fairness, transparency and accountability. Hmmm... ya think?

He states, "Just as we demand credit card users to act responsibly, we demand credit card companies to act responsibly, too."

Some of the changes taking place include:

• credit card statements disclosing to cardholders how long it will take to pay off a balance, and how much it will cost in interest if only minimum monthly payments are made
• no more retroactive interest rate increases that go into effect with no explanation or warning
• every credit card company will have to post their credit card agreements online
• credit card companies will have to mail credit card statements 21 days before payment is due, as opposed to only 14 days
• no more arbitrarily changing payment due dates
• at least a 45 days notice is to be provided of a change in terms and conditions

The President states that over the past decade credit card debt in the US is up 25%; nearly 50% of all Americans carry a balance on their credit cards, with an average balance of more than $7,000; and 1 in 5 people have a credit card balance that's charged over 20% interest.

With statistics like these, this legislation comes not a moment too soon.

You can catch the video (11:17) of President Obama's announcement of this sweeping credit card reform below:

25 Banks Failed in 2008, Was Yours One of Them?

Definitely a sign of the times, an unbelievable record number of 25 banks failed in the US in 2008.

The banks that closed, along with their locations and closing dates are as follows:

Douglass National Bank - Kansas City, MO - 1/25/08
Hume Bank - Hume, MO - 3/7/08
ANB Financial, NA - Bentonville, AR - 5/9/08
First Integrity Bank, NA - Staples, MN - 5/30/08
IndyMac Bank - Pasadena, CA - 7/11/08
First National Bank of Nevada - Reno, NV - 7/25/08
First Heritage Bank, NA - Newport Beach, CA - 7/25/08
First Priority Bank - Bradenton, FL - 8/1/08
The Columbian Bank and Trust - Topeka, KS - 8/22/08
Integrity Bank - Alpharetta, GA - 8/29/08
Silver State Bank - Henderson, NV - 9/5/08
Ameribank - Northfork, WV - 9/19/08
Washington Mutual Bank - Henderson, NV & Park City, UT - 9/25/08
Main Street Bank - Northville, MI - 10/10/08
Meridian Bank - Eldred, IL - 10/10/08
Alpha Bank and Trust - Alpharetta, GA - 10/24/08
Freedom Bank - Bradenton, FL - 10/31/08
Franklin Bank, SSB - Houston, TX - 11/7/08
Security Pacific Bank - Los Angeles, CA - 11/7/08
The Community Bank - Loganville, GA - 11/21/08
Downey Savings and Loan - Newport Beach, CA - 11/21/08
PFF Bank and Trust - Pomona, CA - 11/21/08
First Georgia Community Bank - Jackson, GA - 12/5/08
Haven Trust Bank - Duluth, GA - 12/12/08
Sanderson State Bank - Sanderson, TX - 12/12/08

If you had any type of account or financial relationship with any of these banking institutions and want to know how your accounts and loans are affected by their closing, click here to get bank-specific information from the Federal Deposit Insurance Corporation (FDIC).

Also, to learn more about what exactly the FDIC does and the role it plays in protecting the bank accounts of consumers, click here.

Let's all keep our fingers crossed, and hope that 2009 will be a much better year for the banking industry.

And Still I Rise! Consumer Credit, That Is

Following are the preliminary consumer credit statistics recently released from the Federal Reserve for May, 2008:

• revolving credit increased at an annual rate of 7.1%, with a total outstanding of $961.8 billion

• non-revolving credit increased at an annual rate of 1.6%, with a total outstanding of $1,608.7 billion

• overall, consumer credit increased at an annual rate of 3.6%, with a total outstanding of $2,570.6 billion

Don't forget to check back here next month to see how these preliminary May, 2008 stats compare to the revised final figures that will be released later.

The revised figures for April, 2008 are:

• revolving credit decreased at an annual rate of -0.5%, with a total outstanding of $956.2 billion

• non-revolving credit increased at an annual rate of 6.1%, with a total outstanding of $1,606.6 billion

• overall, consumer credit increased at an annual rate of 3.6%, with a total outstanding of $2,562.8 billion

Foreclosures at Record High... Which States are the Top 10 Worse?

According to RealtyTrac, foreclosures in the US have hit a record high since they first started issuing their "Foreclosure Market Report" in January of 2005.

Their most recent report, which covers May 2008, and includes all types of foreclosure filings such as default notices, auction sale notices and bank repossessions, shows a 7% increase over April 2008, and a whopping 48% increase over May 2007.

The report reveals that 1 in every 483 households in the US had some sort of foreclosure filing during the month of May.

That's not very good news.

The top 10 states with the highest foreclosure rates are:

#1   Nevada
#2   California
#3   Arizona
#4   Florida
#5   Michigan
#6   Georgia
#7   Colorado
#8   Massachusetts
#9   Ohio
#10 New Jersey

The top 10 states with the highest foreclosure totals are:

#1   California
#2   Florida
#3   Arizona
#4   Michigan
#5   Ohio
#6   Georgia
#7   Texas
#8   Illinois
#9   Nevada
#10 New Jersey

Outstanding Consumer Credit Still High

Following are the preliminary consumer credit statistics from the Federal Reserve for April, 2008:

• revolving credit increased at an annual rate of 0.4%, with a total outstanding of $956.9 billion

• non-revolving credit increased at an annual rate of 6.5%, with a total outstanding of $1,608.1 billion

• overall, consumer credit increased at an annual rate of 4.2%, with a total outstanding of $2,564.9 billion

Don't forget to check back here next month to see how these preliminary April, 2008 stats compare to the revised final figures that will be released later.

The revised figures for March, 2008 are:

• revolving credit increased at an annual rate of 7.4%, with a total outstanding of $956.6 billion

• non-revolving credit increased at an annual rate of 5.5%, with a total outstanding of $1,599.4 billion

• overall, consumer credit increased at an annual rate of 6.2%, with a total outstanding of $2,556.0 billion

Consumer Credit Continues to Rise

Following are the preliminary consumer credit statistics from the Federal Reserve for March, 2008:

• revolving credit increased at an annual rate of 7.9%, with a total outstanding of $952.2 billion

• non-revolving credit increased at an annual rate of 6.8%, with a total outstanding of $1,601.1 billion

• overall, consumer credit increased at an annual rate of 7.4%, with a total outstanding of $2,558.4 billion

You'll have to check back here next month to see how these preliminary March, 2008 stats compare to the revised final figures that will be released later.

The revised figures for February, 2008 are:

• revolving credit increased at an annual rate of 5.0%, with a total outstanding of $950.9 billion

• non-revolving credit increased at an annual rate of 2.0%, with a total outstanding of $1,592.1 billion

• overall, consumer credit increased at an annual rate of 3.1%, with a total outstanding of $2,543.1 billion

The Fight for Your Economic Stimulus Rebate Check

Economic stimulus payments started rolling out and now the battle is ON!

The fight among retailers and advertisers for your economic stimulus rebate check is in full force!

These folks want your money, and they want it bad!

Businesses large and small are offering all sorts of deals to make it as easy as possible for you to give them your money. Some of the "deals" being offered by businesses are:

1. cashing your rebate check for free, no strings attached (but hoping you spend some or all of it with them)
2. cashing your rebate check for free if you spend it with their business
3. cashing your rebate check for free and offering you discounted prices on merchandise
4. cashing your rebate check for free and offering you a X% discount (10% is really popular!)
5. converting your rebate check into their store's gift card
6. giving you a X% bonus when you convert your rebate check into their store's gift card (again, 10% is really popular!)
7. giving you additional money when you convert your rebate check into their store's gift card
8. accepting your rebate check as a form of payment
9. matching the amount of your rebate check (sometimes just up to a certain amount) if you spend it on certain items
10. offering special cash bonuses or discounts based on your spending in $300 increments
11. special rebate check themed sales
12. special rebate check priced menus at restaurants
13. special rebate check discounted vacation packages

The National Retail Federation estimates that about $43 billion worth of rebate checks (out of $152 billion) will be spent by consumers with our nation's businesses.

So before you cave to all of the marketing hoopla, be sure to think long and hard about how your economic stimulus rebate check could best be spent.

Just because these businesses are doing their best to appeal to your heart's desires to get you to spend your rebate check with them, doesn't mean you have to.

Be sensible and be practical.

Don't use the money frivolously if you have any pressing or outstanding financial obligations that you could really use that money for instead.

And if plan to partake in a special offer, discount, incentive, or promotion, be sure to get all of the details before you spend your rebate check.

Sometimes there's a catch. And you don't want to be caught off guard and get sucker-punched by the small print or hidden details!