Credit Card Legistlation to start February 2010

Debt seems to define the American population, and in many cases, it is the sole problem most Americans are facing financially, economically, emotionally, mentally. Credit card companies and their high credit card rates do not seem to be helping either. In February 2010, the Credit Card Accountability, Responsibility and Disclosure Act became active in hopes of helping this credit card debt problem.

In May 2009, a bill was passed on credit card limitations to be set into action in February 2010. The bill’s details can be summarized into the soul purpose of eliminating extreme penalty fees from serious credit card owners. In opposition, avid credit card users could be in trouble of some of these regulations.

As a result, many credit card companies are threatening to take away rewards programs to make up for the loss of ROI on the distribution of fees.

The Credit Card Accountability, Responsibility and Disclosure Act covers the following:

Banks must wait 60 days after due dates before charging late fees on late bill payments. This could be a good thing for people who are usually prompt in paying bills right on time. However, if you’re not very good

at meeting the date, this could mean an extra 60 days grace to you, but a higher fee in the end if you miss the date.

Credit card companies now must give a 45 day notice to cardholders before they change the interest rate fees.

Banks and credit companies are required to send a bill 21 days in advance of the due date, to ensure holders have an ample amount of time to get their bill paid on time.

Bill payments counted the day after due to holidays and weekends will not be counted on time to credit card companies and banks.

Payments on multiple bills with different interest rates will now be applied to the bills with the highest interest rates.

Banks now must issue ‘permission’ before ‘allowing’ you the privilege of spending more than your issues amount on your credit card.

Credit card users now must be 21 to issue a card, otherwise a parent or guardian must be the primary cardholder. This can be appealed based on the amount of independent income of an individual under 21.

Dormancy fees on credit card gift cards now must be clearly stated from the issuer to the buyer the day of the purchase, which includes a 10 point font rule on the card and documents.

Related posts:

  1. Understanding Credit Card Fees
    It’s no secret that credit cards come with fees. It’s important to understand exactly what these fees are for so that you can avoid them if possible, or at least...
  2. Dissect Credit Card Offers with a Metaphorical Scalpel
    While most credit card offers come from legitimate credit card companies, it’s extremely important to watch out for fraud. By following a few important guidelines, you can distinguish between fraudulent...
  3. Credit Card Types – What You Should Know
    If you’re looking for a credit card, it’s important that you know the different types of credit cards that are available to you. A lot of people have a tendency...
  4. Why Credit Cards Are Important
    Every day millions of people sign up for credit cards for a variety of reasons. Some people use them for bills, some to buy clothes, and some just use them in...
  5. 3 Ways to Revive Your Credit Score
    A credit score can’t be rebuilt overnight. If you’ve encountered tough times and have seen your credit score drop in recent years, the sad reality is it will take some...