Next time you get mad at a retailer for not letting you charge under $5… the law changed

Embarassing… at least I didn;t yell, or throw down my bagels… (but I didn;t threaten to “report them”)…. this morning I got peeved at a $5 minimum sign (my order was $3.8)… but turns out… they were right… the retail industry lobbied and got their dream wish…

New rules: up to $10 minimum OK

The request received little notice because it was tucked into a bill that became an 848-page legislative behemoth — the Dodd-Frank Wall Street Reform and Consumer Protection Act. As fierce debates took place over whether the legislation created or preserved “too big to fail” banks, and whether to set a cap on debit card interchange fees, the short section on credit card minimum payments survived, there on page 698.  It went into law in July 2010, and all those handwritten signs went from forbidden to federally blessed.  The law says that merchants can set a credit card minimum purchase of up to $10, as long as they treat all cards the same. It also allows the Federal Reserve to review and increase the minimum payment amount.  

To which I reply: “They’re thieves. They’re thieves. They’re filthy little thieves. Where is it? Where is it? They stole it from us, my precious. Curse them, we hates them! It’s ours it is, and we wants it!”

Read more: http://www.creditcards.com/credit-card-news/credit-card-minimum-payment-purchases-law-1282.php#ixzz2fMX0juvM

About mkevane

Economist at Santa Clara University and Director of Friends of African Village Libraries.
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