Today’s consumer has a total of 13 credit obligations on record at a credit bureau. With so many obligations, consumers need up-to-date credit card tools and help more than ever before.

To that end, CardHub.com (owned by the same company as this blog), the world’s most innovative credit card portal, today announced the expansion of its “Tools and Help” section, which offers free and comprehensive advice and tools for U.S. consumers. This new source of credit card help is now available online.

It’s interesting that we never debate the need for a police force to regulate civic behavior.  We can all imagine that if, tomorrow, there simply were no more police officers, anarchy and chaos would be the likely result.  Yet, when it comes to our economy, we are able to entertain debate about the need for regulation without ever acknowledging that an economic market without regulation is just as volatile as a city without law enforcement.

We need regulation, this should never have been up for debate, and it is certainly obvious how much we need regulation given the various economic scandals that are the root causes of the current recession.  If there is to be debate, let it concern, instead, how to create regulation that levels the playing field between companies.  By regulating businesses and their products in such a way so as to make comparison possible, we would foster the competition and innovation that are key elements for a successful free market.

Back in December of 2008, we commented on Chase’s new policy of charging a monthly fee on customers that were promised a fixed APR for the life of their balance transfer. We found the policy to be troubling, to say the least, as it essentially breached the promise advertised to these customers when they applied for their Chase credit card. 

Recently, the state of New York has taken an active role in applying pressure to get Chase to change its policies.  Attorney General Cuomo said:

According to a recent CNN story, state unemployment agencies are making benefits available either immediately through a debit card or after a ten day waiting period through check. These agencies have loaded their debit cards with numerous little fees designed to nickel and dime anyone getting unemployment payments through this method.

If state unemployment agencies offered an immediate turnaround for providing the unemployment benefits regardless of whether the recipient chose the debit card option or the check option, there would be no problem.  Given that these benefits are going out to people who are unemployed, in many of these cases, the choice of waiting 10 days to get a check is really no choice at all.  Bills need to be paid, and food must be bought.  Having already waited for unemployment, once they get their benefits, they need them immediately.

Rewards programs have been used to lure in customers, but with the credit card crisis, the value of those rewards is being altered.  According to a letter that Citibank sent out to its customers, as of March 1, 2009, “ThankYou Network may be revised in a manner that may affect your ability to use the ThankYou Points you have already accumulated.” More specifically, “20,000 Thank You points used to get you a $250 gift card and now they only get you a $200 gift card” says Heather Stockburger, a Citibank credit card customer. This backpedaling and manipulation of the value of reward reinforces what Card Hub (owned by the same company as this blog) has been saying for some time:  cards with cash-back programs are better than mileage or points rewards cards because they give you what you earn as you go and do not store up your earnings in points systems that can be changed by the card issuer.

Citibank is not alone in altering their points system.  Reports from multiple sources now suggest that the rewards point systems are changing on cards issued by Chase, Discover, and American Express.  With these companies altering their points and miles rewards, membership is becoming significantly less rewarding. 

Recently a customer of Chase wrote to me with concerns about what is happening on his credit card.  He had transferred a balance to a Chase credit card with a rate that was fixed for the life of the loan.  Recently, however, Chase started charging him a mandatory monthly “Account Services” fee.

After reading this letter, I am disturbed by the fact that people are now being assessed an additional monthly fee by Chase even though they were originally promised an unchanging rate contingent upon their behavior as a responsible borrower.