Lowes credit card January 31, 2010, 01:25:34 PM GE Money just sent me a letter.First sentence says the following quote"Due to new credit card regulatory requirements, we will no longer be [COLOR="Red"]permitted[/COLOR] to offer "no payment" promotions".Placing blame on the govt ?I am on the phone with them now because no govt regulation has been cited nor any other supporting ref to the above statement. It sounds like they have made changes based on external influence and i am skeptical. If it were internal changes due to the influence of external regulations, then they could have substituted the word "permitted" with "able".Thoughts? Quote Selected
Lowes credit card Reply #1 – January 31, 2010, 04:20:19 PM As of February 1st, credit card companies will no longer be permitted by the government to offer no payment promotions. I don't know the name of the bills in question, but it's all part of the new regulations aimed at protecting idiots from themselves.Shiny Side Up!Bill Quote Selected
Lowes credit card Reply #2 – February 01, 2010, 01:51:47 PM I'm believe (watched a segment on the Today show not too long ago about the regulatory changes) if you CURRENTLY have a no payment promotional balance, that they do have to continue to honor that for its duration. Quote Selected
Lowes credit card Reply #3 – February 01, 2010, 04:05:28 PM My credit card used to have a no payment option in December for Christmas and I thought this was pretty nice. Nowadays I can't remember a month where I did not pay in full, must be at least 15 years.TED Quote Selected
Lowes credit card Reply #4 – February 01, 2010, 10:06:39 PM point missed,I am trying to make GE Money cite the regulatory bill that forced them to take this away,,ie- blame on the govt.no balance on my card Quote Selected
Lowes credit card Reply #5 – February 01, 2010, 10:09:15 PM QuoteDue to new credit card regulatory requirements, we will no longer be permitted to offer "no payment" promotions".It's like they're saying the government isn't allowing them to do that anymore. Prob. BS Quote Selected
Lowes credit card Reply #6 – February 01, 2010, 10:13:48 PM protouring knows something i dont know,, but he is probably right.Being a "green" company, obviously GE wouldnt waste all that time / paper /fuel to inform people of this without something to back it up. Its going to be later this week before i hear back from GE Legal about the specific supporting dospoogeentation.Yeah,, I know,, sounds like i have too much time on my hands. Actually, i gather facts before I mouth off like i know what im talking about. I try to dig in on topic as much as possible so I can at the least be infomred of my surroundings. Quote Selected
Lowes credit card Reply #7 – February 02, 2010, 08:17:29 AM Quote from: jcassity;308920protouring knows something i dont know,, but he is probably right.Being a "green" company, obviously GE wouldnt waste all that time / paper /fuel to inform people of this without something to back it up. Its going to be later this week before i hear back from GE Legal about the specific supporting dospoogeentation.Yeah,, I know,, sounds like i have too much time on my hands. Actually, i gather facts before I mouth off like i know what im talking about. I try to dig in on topic as much as possible so I can at the least be informed of my surroundings.I don't exactly "know" anything, but as we are in the process of preparing our home to sell we have utilized the "no payments/no interest" option on a few things needed for that purpose, and in the last several weeks I have had several companies tell me virtually the same thing as Lowe's has told you. The latest of these was Empire Today (carpet company) who said that they could not offer a "no payment" account after February 1st. The dates all seem rather arbitrary as far as I can tell, as the actual date of any changes made by the Fed is February 22. Nonetheless, looking around on the web and actually reading the full bill as signed by the President, I cannot find the exact language the credit card companies are utilizing for these changes. Understanding that this does put a crimp in their introductory "promotional periods" however, leads me to believe that they are doing it out of a legitimate concern for the consequences that might arise if they continue to offer such "no payment" promotional periods.Thus, I believe their concern comes from the language in H.R. 627 that reads; "IN GENERAL.—In the case of any credit card account under an open end consumer credit plan, no creditor may increase any annual percentage rate, fee, or finance charge applicable to any outstanding balance, except as permitted under subsection (b)." (Sec 171:A) coupled with ‘‘the increased annual percentage rate is not applied to transactions that occurred prior to commencement of the period;" (Sec 171:C)This language makes it so that a credit card company who offers an introductory "No Payment/No Interest" rate cannot apply interest to the previous purchase for the purpose of penalty for breach of contract if the consumer fails to make payments as agreed. In the case of something like the Lowe's Project Card, this is the time period in which nearly all, if not all, of the purchases will be! Thus, the elimination of the "no payment" side of the equation will allow the assessment of interest on the major purchases of an account in the even that the account ends up more than 60 days past due.Shiny Side Up!Bill Quote Selected
Topic: Lowes credit card (Read 818 times)
previous topic - next topic
