Why the CARD Act Should Apply to Business Cards
News from American Banker:

Ladies and gentleman, prepare your red pens. It’s time to revise the Credit Card Accountability Responsibility and Disclosure Act of 2009.

Sooner or later, we’re going to get to that point, and it’s not because this personal finance reform law is ineffective. It’s actually the opposite. The CARD Act, which went into effect in February of 2010, has done a remarkable job  of increasing transparency in the credit card industry and eradicating many of the anti-consumer practices that helped lead us into the Great Recession. The problem is the law discriminates against small-business owners – 80% of whom rely on credit cards. That simply has to change.

Just look at what the law does and tell me why we wouldnt want to confer the same benefits on small-business owners.

It eliminated double cycle billing (basing interest charges on one’s average balance over the past two billing cycles, rather than only the most recent universal default), applying penalty annual percentage rates to a person’s credit card just because they missed a payment on a completely separate loan or…………… continues on American Banker

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Sacramento staff’s credit card travel charges at their highest since ’08
News from Sacramento Bee:

Sacramento city employees are hitting the road again – staying in hotels, flying across the country, and attending conferences at levels not seen since the recession slammed the city budget.

Travel-related purchases made by city workers on their government credit cards so far this year are at their highest level since 2008. Through July 2012, they totaled $ 119,367, nearly double what employees spent in the first seven months of 2011, according to a Bee analysis of data obtained through the Public Records Act.

Those travel purchases helped drive an overall increase in credit card use by city workers in 2012, records show. Charges for a range of purchases from office supplies to meals are on pace to hit nearly $ 1.5 million, their highest level since 2009.

The jump in spending comes as the city continues to grapple with ongoing deficits. This summer, the City Council voted to lay off more than a dozen police officers to help fill a $ 15.7 million budget gap.

City officials said they are confident employees are not abusing their cards by making charges for non-work purposes. Still, with more than 200 accounts and roughly 48,000 purchases made by employees over the past five years, City Manager John Shirey said last week he plans to scale back use of the cards.

He also defended the increased travel spending. The trips aren’…………… continues on Sacramento Bee

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