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[0:04] ..." a new on Frontline special looking at credit cards. Specifically what these credit card companies are practicing when it comes to unfair or deceptive practices. What did you uncover or Rihanna."...
[1:07] ..." For example one thing. These credit card issuers cannot arbitrarily and instantly change in interest rate and that sort of thing. But in the meantime I understand a lot of these credit complex credit card companies are making the most of this eight month window."...
[1:30] ..." the new law. And it is not -- Them instantly changing your interest rates paid the agents still. They can't change your interest rates on -- on your retroactive. In other words in -- you do something wrong look like you're sixty gateway. So that's the"...
[2:08] ..." I understand too that credit card companies tend to target people who probably can ill afford. A credit card in the first place they target people who are may be on the margin."...
[2:26] ..." just don't have the extra money. To afford to pay interest on credit card and -- and borrowing money basically. There are ready living too close to the end it's too close to the paycheck. And those. There was no real polish. During the nineteen -- ninety's and early part of this century. Two. Get into that market particularly because tanker company -- those people would be more likely to carry on it's more likely just make the minimum payments. And keep most of them realize it when you're making the minimum payment by credit card. It's gonna take 2030 years to pay -- card option is if it about I have not seen any."...
[3:13] ..." year leafy for the car they paid off the balance of the credit card company. Is not making an interest off of view. How are they going to have to. What is it do you think these customers might start to see as some ways for the credit card companies to to get money make money off of these people."...
[3:39] ..." Going to raise the interest rates. So let's say there's a monthly can't payoff amounts insults you may have to pay more interest -- what is normally."...
[3:52] ..." The is that people who are actually getting the benefit of the credit card. Dozens of people. Are actually. Getting the credit for free but the expense of and -- those people in chaos and still in full every month are usually more affluent people have a little extra money. And not always mean obviously there are certain people -- excellent financial planners but not everybody likes that. And so those people can really getting the benefits expenses -- income people. Who are getting you"...
[4:33] ..." me out on this if if people aren't happy with what their credit card companies Don or maybe they do pay off their balance every month and now they're going to be start. -- from start to be charged defeat. And they want it disabled I'm gonna cancel that card I amount only going to use one card I'm -- cancel -- When you cancel credit card does that hurt your credit rating."...
[4:58] ..." this in new research that we did is that when you cancel credit card. Four when you but say they wanna raise your interest -- you say no one might do that they would they will"...
[5:35] ..." slightly lower your credit score that would really irritated when the did credit card company closed mr. now."...
[0:00]" We're talking with Frontline producer Arianna Zelda Granada was. About a new on Frontline special looking at credit cards. Specifically what these credit card companies are practicing when it comes to unfair or deceptive practices. What did you uncover or Rihanna."
[0:17]" Well we. We basically. Continued reporting that we started five years ago showing that many of the practices that record companies engaged in. You know really hurt the consumer and for years there's been -- should try to reform in congress and we found that. Because of law and heavy lobbying by the banking and financial services industry. That reform has been very difficult and even the reform that was recently passed may not be enough."
[0:48]" Now this reform legislation what is -- February when it kicks and."
[0:53]" It kicking in February some some parts of it -- operative has the."
[0:58]" Have started to to -- in but basically in February. We all should expect to see very different credit cards."
[1:07]" For example one thing. These credit card issuers cannot arbitrarily and instantly change in interest rate and that sort of thing. But in the meantime I understand a lot of these credit complex credit card companies are making the most of this eight month window."
[1:24]" At that that they. They negotiated them and they pushed for more time to implement the new law. And it is not -- Them instantly changing your interest rates paid the agents still. They can't change your interest rates on -- on your retroactive. In other words in -- you do something wrong look like you're sixty gateway. So that's the big change and that's that -- that should be -- change for consumers and basically any issues -- month window of about change to go into effect. Do qualifying in -- day and doesn't go into effect February. And during that time disappointed Derrek -- winning -- race but everybody across the country from their --"
[2:08]" I understand too that credit card companies tend to target people who probably can ill afford. A credit card in the first place they target people who are may be on the margin."
[2:20]" Yeah I mean similar to what you -- sub prime market -- mortgage market. There are certain people who really just don't have the extra money. To afford to pay interest on credit card and -- and borrowing money basically. There are ready living too close to the end it's too close to the paycheck. And those. There was no real polish. During the nineteen -- ninety's and early part of this century. Two. Get into that market particularly because tanker company -- those people would be more likely to carry on it's more likely just make the minimum payments. And keep most of them realize it when you're making the minimum payment by credit card. It's gonna take 2030 years to pay -- card option is if it about I have not seen any."
[3:06]" Right or you know people who pay off their balances every month and they are. Number one maybe not even paying a year leafy for the car they paid off the balance of the credit card company. Is not making an interest off of view. How are they going to have to. What is it do you think these customers might start to see as some ways for the credit card companies to to get money make money off of these people."
[3:31]" Will there -- that they can start charging Emanuel he. Chooses. People and they're also most likely."
[3:39]" Going to raise the interest rates. So let's say there's a monthly can't payoff amounts insults you may have to pay more interest -- what is normally."
[3:47]" It's important it's important to recognize that those people are considered. The is that people who are actually getting the benefit of the credit card. Dozens of people. Are actually. Getting the credit for free but the expense of and -- those people in chaos and still in full every month are usually more affluent people have a little extra money. And not always mean obviously there are certain people -- excellent financial planners but not everybody likes that. And so those people can really getting the benefits expenses -- income people. Who are getting you know. Hurt either as --"
[4:31]" Arianna I heard one cent in May be -- me out on this if if people aren't happy with what their credit card companies Don or maybe they do pay off their balance every month and now they're going to be start. -- from start to be charged defeat. And they want it disabled I'm gonna cancel that card I amount only going to use one card I'm -- cancel -- When you cancel credit card does that hurt your credit rating."
[4:54]" balance of and the one of the things that surprised me in the in this in new research that we did is that when you cancel credit card. Four when you but say they wanna raise your interest -- you say no one might do that they would they will close your accounts. That particular news when you say -- when they close your accounts that definitely does hurt your credit score."
[5:16]" And I've heard that it opens --"
[5:18]" You're sick at all temperature credit score when you -- an account because."
[5:23]" Could -- part of your but your score is is in how how much -- that you have available to yourself. That you're not using."
[5:30]" So when you basically. Contact -- actually slightly lower your credit score that would really irritated when the did credit card company closed mr. now."
[5:41]" Good things to know obviously a lot more to find out when Frontline ears as special again on credit cards we thanks for your work. So -- so much pleasure -- major on the phone this morning thank you."
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