Consumers have played an active role in the Feds enforcing these regulations, posting a lot of comments on the Federal Reserve’s website.

The credit card industry fears that that the limitations they are to deal with will affect their ability to deal with risk, and they will have to raise interest rates and decrease the amount of available credit.

When I was unemployed, I was late for two payments on a $3500 debt. I paid, but paid late. That turned my interest rates from 12% to 25% for 6 consecutive months (that’s over $400 in penalties, plus the $30 late fees for 2 months). As luck would have it, I was one day late on month 6, which allowed them to keep subprime for 6 more months (and by that time, I paid it off completely).

Almost all credit card agreements give lendors this discretionary power. However, whether they choose to exercise this option depends on whether they want to keep you as a customer or want to squeeze you for all you’re worth. On a positive note, when you make telephone contact with a live person at the credit card company about your problems, the customer service usually have authority to erase one late fee.

Keeping debt on a credit card is not a good idea, but the secondary problem of being absolutely sure minimal amounts are paid on time is another important problem. People need to ensure that a reliable reminder system (or automatic withdrawal system)is in place to make sure you are never late.