Friday, Apr 18th

Last update:04:20:51 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

What's Happening Here? Cheney Indicted in Texas

Strange things are happening.  The dark warrior, destructor of worlds, harbinger of death and destruction, Dick Cheney was indicted in ...

Read more

4074 US SOLDIERS KILLED BUSH DANCES AT WEDDING

While George Bush is all misty eyed at his daughters wedding more that 4074 US Soldiers and countless Iraqis will ne...

Read more

Rand Paul Supporter Tim Profitt - Apologize for Putting Your Head Under My Foot!

News image

More proof that teabaggers are nuttier than holiday fruitcakes.  Tim Profitt, the guy who stomped on the neck and head of...

Read more

Giuliani Praises Palin

News image

"Palin is GREAT for the GOP", says former New York City Mayor, Rudy Giuliani.Yeah - the dying GOP base - ...

Read more

Inauguration Day

News image

Hope we can believe in! And Hope has arrived TODAY! America welcomes the 44th President of the United States! This is...

Read more

Oh Mamma Look at Obama Go!!

News image

Maybe it's time to give America some credit on the race issue. Obama takes Iowa and Maine the two fairest states...

Read more

Joran Vandersloot Needs a New Lawyer

News image

Maybe there are defense lawyers out there with some degree of a conscience. Murder suspect Joran Vandersloot's lawyer, Max Altez, qu...

Read more

New York State County Prints Ballots with Obama's Name Spelled Osama

Another day, more dirty voter tricks.  Rensselaer County in NY state printed ballots with Barack Obama's name spelled Osama , one ...

Read more

As Ronald Regan would say "THERE YOU GO AGAIN".

In spite of all the hoopla surrounding Obama's now retired pastor he was right about one thing. The US meddles ...

Read more