The Many Ways in Which Consumers will be Protected Under the New Credit Card Reform Bill
The new credit card reform bill, which was recently signed by President Obama and set to go into effect in July 2010, was created in an attempt to reign in credit card companies that many say have simply not played by the rules.
For many of us who have worked to maintain our credit, the new credit card bill promises to protect us from unscrupulous activities commonly played out through credit card companies. For those with poor credit and less-than-stellar credit histories, the credit card reform bill will not provide as much protection.
The new credit card reform bill has many, different aspects, some of which can become quite confusing at first glance. However, it’s in our best interest to educate ourselves on these new laws and to make sure that we are adequately protected against questionable practices.
- Credit card companies will no longer be able to raise rates on your credit card if you are late on any other type of installment loan or utility bill. Called universal default, this practice had many credit card consumers screaming foul. So, if you missed the deadline for your gas bill, you can rest assured knowing that your credit card company cannot penalize you and raise your credit card interest rate.
- Credit card companies cannot charge you finance charges if you pay your bill in full. Called double cycle billing, many credit card companies would add finance charges to a customer’s next billing cycle, even if the balance was paid off in full.
- Credit card companies can only institute a credit rate hike if you fail to pay your bill on time or if the credit card has a variable interest rate.
- Credit card companies must provide customers with reasonable due dates; in other words, they must provide consumers with at least 21 days to pay their bills.
- Credit card companies must provide consumers with fair payment allocation. In other words, payment made to your credit card must be applied to higher interest rate charges first.
- Credit card companies will not be able to charge outrageous over-the-limit fees. In addition, card holders will be able to choose whether to pay over-the-limit fees or simply be declined if they exceed their credit limit.
- Credit card companies must provide clear, easy-to-read terms and conditions to their customers so that consumers can make the most informed decisions regarding their credit.
Related posts:
(No Ratings Yet)
Loading ...
