The Card Act which went into effect this week says that banks can not charge a penalty of more that $25 for going over your credit limit. Did you think the banks were going to take it on the chin?

The spread on credit card interest–the difference between the interest rate on your charges, and the Treasury benchmark rate–is the highest it’s been in 22 years. The culprit? The CARD Act, which has given banks much less flexibility in the fees they charge.

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We have switched from a fee for undisciplined borrowers to a interest penalty for all. How is it that some people thing regulations are the cure for all our ills? It seems like every bad situation gets worse whenever the government gets involved.

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