Monday, Mar 30th

Last update:05:18:56 PM GMT

Notice: Uninitialized string offset: 1751 in D:\sites\urbanswirl\plugins\system\SEOSimple.php on line 141

The New Credit Card Rules Are Coming

E-mail Print
Share

creditcards

Finally, a little relief for consumers...the credit card companies all have to play by a strict set of rules.  But don't celebrate too much just yet, although the rules are clearly an improvement, they are by no means a clear win for consumers.

Some of the new rules for credit cards:

The Credit CARD Act of 2009 curtails many of the most abusive practices.

• no retroactive rate hikes;

• statements must be mailed 21 days before payment due date;

• payment dates can't suddenly be shifted;

• statements must say how long it will take to pay off balances and the total interest costs if paying just the monthly minimum;

• 45 days notice required for changes in terms and conditions.

What does this mean to you?  First, and most important, card companies can no longer increase the interest rate on existing balances.  No longer will they be able to suddenly start charging you 25% interest on a $2000 vacation charge that you originally charged at an interest rate of 7%.  Another important change, no more mystery due dates.  Card companies cannot change your due date hoping you will miss a payment, and then incur huge late fees.  No more one month the bill is due on the 20th and next month it's due on the 15th, they must assign a billing cycle and stick to it.  However, there is one big glaring omission from this act, no caps on interest rates or late fees.  That's right, if you are late the bank could charge you $39 or $390, it's up to them...so pay on time, or better yet pay it off.

The recession is still in full swing, and consumers need all the help we can get. This Credit Card Act is just one step in the right direction of reigning in some of the banking abuses that helped get us all into this mess.

Add comment

Security code
Refresh

Latest Comments

From the Forum

Article Roundup

Allen West (R-Florida) Refuse to Concede

News image

Lost his re-election to newcomer Democratic rival, Patrick Murphy, Tea-party token black guy and sore loser Allen West ain't going to let go of...

Read more

Man Brings Weapons thru PR Airport

News image

Life must be tough when one is IQ challenged - aka. STUPID. A Rhode Island man boarded a flight in Pu...

Read more

Chinese Communist Newspaper Got Punk'D

News image

North Korea's Kim Jong-un named 2012 Sexiest Man Alive - by The Onion! The People's Daily, China's Communist Party newspaper pi...

Read more

Bush Administration Memoirs 2010

News image

New books are scheduled to be released in 2010. Books from the Bush-regime Administration. Is this bad news for the ...

Read more

McCain is an Acorn Hypocrite

For about a week we have had to listen to the McCain campaign and its surrogates blather on and on ...

Read more

Time Person of the Year 2010

News image

Facebook founder and CEO, Mark Zuckerberg, has been named Time's Person of the Year 2010! A billionaire at the age of...

Read more

Hurricane Sandy Heading Towards Philly and Jersey

News image

If you have been under a rock for the past few days, then you haven't heard about Hurricane Sandy, or ...

Read more

Government Official - Everyone Sends Racist Emails

News image

Here we go again.  A small time councilman seems to be quite the source of racist humor...and according to him, he m...

Read more

Bill O'Reilly is really mad

O'Reilly is mad.  Really mad, that Obama won't talk to him.  And why should he. He's not a journalist.  He's ...

Read more