SECOND Most Misleading Headline of the Week

Of course, nothing tops this week’s winner (commented on here), which is still up at ABC’s web site after four days.
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The Headline:

— Credit cards quitting rate-bumping game

Credit card issuers are pulling back from the controversial practice of raising customers’ interest rates because of missteps with other creditors.

Why It’s Misleading:

— Reason 1: They Haven’t Quit Rate-Bumping; They’ve Increased It–

Under so-called universal default policies, issuers can raise an interest rate if a card holder pays a mortgage or utility bill late, their credit score drops or they inquire about a car loan. Nearly 45% of credit card issuers had universal-default policies earlier this year, up from 39% two years ago, says advocacy group Consumer Action.

— Reason 2: You May Have to Close Your Account to Avoid a Hike
(and they haven’t given up the ability to change their minds)–

Some card issuers will set a deadline for customers to refuse a policy change. Miss that, and you could be stuck with the higher rate.

Issuers also can change the card terms at any time. So, even if your bank doesn’t have a universal-default policy now, that doesn’t mean it won’t adopt it in the future.

There is at best limited and mostly anecdotal evidence that Universal Default (or “UD”) is on the decline. The best that can be said is that “some” card issuers are quitting “some” aspects of the rate-bumping game.