New credit card rules kick in - Ahwatukee Foothills News: Commentary

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

New credit card rules kick in

Print
Font Size:
Default font size
Larger font size

Posted: Thursday, August 27, 2009 11:00 pm

Beginning last week, a new law started protecting consumers against what some call abusive practices by credit card issuers.

The first phase of the Credit Card Accountability Responsibility and Disclosure Act of 2009 – better known as the Credit CARD Act – takes effect Aug. 20. That is when you must be given:

• At least 21 days to pay your monthly credit card bill without threat of a late fee, rather than the current 14 days.

• At least 45 days’ advance warning, in writing, of changes to your credit card account. Currently, only 15 days’ notice is required in most circumstances.

However, the new advance warning will not be required in some cases: if you have an introductory rate that expired, if your card carries a variable interest rate, or if you were paying a reduced rate under a hardship or “workout” plan and you failed to make your payments according to that plan.

• The right to opt out of interest rate hikes and fee increases, and to cancel your account while paying off any outstanding balance under the previous terms. Currently, issuers offer opt-out provisions only at their discretion.

Second phase starts in February 2010

Most other provisions of the Credit CARD Act take effect Feb. 22, when card issuers:

• Cannot increase interest rates on your existing balances unless you’re at least 60 days late on the account. Also, rates cannot be increased on new accounts in their first year unless you are 60 days late in payment.

• Must provide clear disclosure of terms before you open an account.

• Must honor promotional interest rates for at least six months.

• Cannot charge over-limit fees unless they obtain the account holder’s prior consent to accept and process over-limit transactions.

• Cannot charge fees or penalties for accepting payments by mail, phone, electronic transfer or any other means, unless the payment is processed through an expedited service processor.

• Are prohibited from double-cycle billing, in which a customer’s interest and finance charges are based on two months of the account’s balance. This practice hurts people who may have paid off the balance on one month but not the other.

• Are banned from universal default practices, in which cardholders’ interest rates are raised because of late payments made to others, such as mortgage or insurance companies.

Effective July 1, 2010, if your interest rate is increased due to your being 60 days late on a credit card payment, the credit card issuer must revert back to the original rate after you complete six months of on-time payments. There will also be new rules requiring that gift cards not expire for at least five years, with a ban on inactivity fees.

 

Sid Kirchheimer writes about consumer and health issues for AARP. For more information, visit www.aarp.org.

More about

More about

More about

  • Discuss

Cornyn: Clintons 'Acting Like the Rules that Apply to...Everybody Else Don't Apply to Them'

(CNSNews.com) - Former President Bill Clinton's private meeting with Attorney General Loretta Lynch not only "looks really bad," but it's typi…

Published: July 1, 2016 - 9:25 am @ http://www.cnsnews.com/news/article/susan-jones/co…

From Ocean to Plate

By J.P. Brooker As World Oceans Month unfolds this June, it’s a good time to think about the health and stability of our global marine resourc…

Published: July 1, 2016 - 9:06 am @ https://greenlivingaz.com/ocean-to-plate/

AM Roundup: Lynch’s Pledge

Law Blog rounds up the morning’s legal news: Unsettled: The Second Circuit threw out a $7 billion antitrust settlement between Visa and Master…

Published: July 1, 2016 - 8:24 am @ http://blogs.wsj.com/law/2016/07/01/am-roundup-lyn…

Kaya Henderson On The Move, For-Profit Higher Ed, Accountability Games, Online Earnestness, CTE, Higher Ed, Charters, And Teachers Unions Against Investors! Plus Cheese News.

Happy Independence Day weekend! On this date in 1863 the Army of the Potomac led by George Meade and the Army of Northern Virginia led by Robe…

Published: July 1, 2016 - 8:24 am @ http://www.eduwonk.com/2016/07/kaya-henderson-on-t…

U.S. Manufacturing Expands at Fastest Pace in More Than a Year

Factory activity expanded in June at the fastest clip in more than a year, an encouraging sign that American manufacturers are gaining tractio…

Published: July 1, 2016 - 8:01 am @ https://www.bloomberg.com/news/articles/2016-07-01…

After a national scandal, New Mexico’s veterans health care is looking up

Info For years, military veterans have complained about how long it takes to get an appointment with a Veterans Administration health care pro…

Published: July 1, 2016 - 7:35 am @ http://www.hcn.org/articles/after-a-national-scand…

The Best Movies and TV Shows Coming to Netflix, HBO, Amazon Prime, and Hulu in July

Every month, tons of new movies and TV shows become available to stream for free for subscribers to Netflix Instant, Hulu, HBO NOW, and Amazon…

Published: July 1, 2016 - 7:23 am @ http://www.slate.com/blogs/browbeat/2016/07/01/the…

Simulation and Nanotechnology

When discussing nanotechnology and simulation, imagine Schrödinger’s cat (or perhaps Alice’s Cheshire version) is peering over your shoulder, …

Published: July 1, 2016 - 6:53 am @ http://www.deskeng.com/de/simulation-and-nanotechnology/

Algorithmic Tattoo Identification Could Have All Sorts of Scary Consequences

The hammer of Thor, or Mjölnir, is an ancient Norse symbol that has been appropriated by white supremacists since at least World War II. Hans …

Published: July 1, 2016 - 5:52 am @ http://www.slate.com/articles/technology/future_te…

Attorney general to back FBI and Justice findings in Clinton email server probe

Attorney General Loretta E. Lynch will support the recommendations from prosecutors and others leading probes into the use of a private email …

Published: July 1, 2016 - 5:23 am @ https://www.washingtonpost.com/world/national-secu…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…