“The credit card reform bill that President Obama is expected to sign Friday is designed to rein in abusive credit card practices, but it has prompted gloomy predictions about the impact on even the best customers…. The bill, hailed by consumer advocates for tackling the powerful credit card industry, sets limits on sudden interest rate increases, capricious fees and abusive terms in fine print. But some unintended consequences could include higher annual fees and fewer bonus reward programs. Some fear an end to the interest-free 30-day grace period for those who pay off their balances each month.” (Buffalo News, Thursday)
The Law of Unintended Consequences strikes again.
FEE Timely Classic
“Ought Implies Can” by Steven Horwitz
