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Half of Americans report interest rates were hikedCredit card companies have been raising interest rates and other fees on customers with an eye on securing last-minute profits before federal reforms take effect in early February. Those rules include limits on the late penalties and high interest rates companies can impose. Some companies have also been changing terms on cards in an attempt to convince some customers with lower credit scores or higher balances to close their accounts. The rush to raise interest rates before the federal reforms take effect has not gone unnoticed in Congress, where some members have introduced legislation to try to counter the trend. According to a Rasmussen poll, 50 percent of those surveyed said their credit card rates were raised in the past six months. The poll also found that 69 percent of customers feel that an interest rate hike makes them less likely to use that card, compared to 25 percent who believe they are just as likely to use a card after rates have been increased. Another finding of the poll was that 77 percent of consumers believe card companies take unfair advantage of them with their interest rates. The love Americans once had for their credit cards has definitely cooled. One recent report from a retail industry group predicts a significant increase in the number of shoppers using cash this holiday season, while a new Gallup survey warns that the average consumer's holiday shopping expenditures this year could be almost as low as they were last year, which was generally considered disastrous for retailers.
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