Consumer Activists Warned Us of This

Remember a few months ago, when the credit card reform bill was working it's way through Congress? There were a number of consumer activists and bloggers (including myself) raising concern that the credit card companies would raise interest rates, before the law takes affect.

We were told, that was just fear mongering, and that wouldn't happen. Now ABC News, reports that we were right.

Scott Talbott of the Financial Services Roundtable, the trade group that represents some of the country's biggest credit card companies, said that rising rates are due to the treacherous economy, higher borrowing costs for banks, and consumers with riskier profiles.

The idea that banks are raising their rates in response to credit reform is "a red herring," he said.

No one disputes that rates are on the climb.

A recent study of 150 credit cards by BillShrink found that interest rates on purchases and balance transfers for card holders have grown nearly 20 percent from January to July of this year.

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