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

Firefighters called to rescue man in White Tanks after leg impaled by stick

BUCKEYE, AZ - Firefighters from several departments are working to help a man who suffered a leg injury while hiking in the White Tanks mounta…

Published: July 28, 2016 - 10:30 pm @ http://www.abc15.com/news/region-west-valley/bucke…

Phoenix charter bus company testing out Pokemon hunting tours

PHOENIX - File this in the "Why-did-I-not-think-of-this?" bin... An Arizona charter bus company is looking to help you on your journey to beco…

Published: July 28, 2016 - 9:06 pm @ http://www.abc15.com/entertainment/events/phoenix-…

Scottsdale's Don Bluth Theatre Plans Fall Closure to Focus on Fundraising

Lynn Trimble A A Just one month after announcing it needed $50,000 to continue operations, Scottsdale-based Don Bluth Front Row Theatre has an…

Published: July 28, 2016 - 8:31 pm @ http://www.phoenixnewtimes.com/arts/scottsdales-do…

Neighbors still scared as hunt continues for Phoenix serial shooter

MARYVALE, AZ - Flyers continue to be posted throughout Maryvale, as neighborhood watch groups spread the word about the Phoenix serial shooter…

Published: July 28, 2016 - 7:36 pm @ http://www.abc15.com/news/region-phoenix-metro/wes…

American Geophysical Union Announces 2016 Fellows

26 July 2016 WASHINGTON, DC—The American Geophysical Union (AGU) today announced its 2016 Fellows, an honor given to individual AGU members wh…

Published: July 28, 2016 - 7:01 pm @ http://news.agu.org/press-release/american-geophys…

Hyundai Tucson gains modest interior enhancements for 2017

Hyundai has detailed a modest list of minor enhancements for the 2017 Tucson lineup. Buyers can now select an optional 315-watt Infinity premi…

Published: July 28, 2016 - 5:35 pm @ http://www.leftlanenews.com/hyundai-tucson-gains-m…

‘Stand by Me’ Oral History: Rob Reiner and Cast on River Phoenix and How Coming-of-Age Classic Almost Didn’t Happen

July 28, 2016 | 12:05PM PT It’s been three decades since “Stand By Me” became the little drama that could, catapulting River Phoenix to stardo…

Published: July 28, 2016 - 5:29 pm @ http://variety.com/2016/film/news/stand-by-me-30th…

Phoenix Suns coach Earl Watson seeking closure, justice after brother's shooting death

After a police officer was shot and killed in his hometown of Kansas City, Kansas earlier this month, Phoenix Suns coach Earl Watson used his …

Published: July 28, 2016 - 5:00 pm @ http://www.abc15.com/sports/sports-blogs-local/pho…

Rob Fullmer of Arizona Craft Brewers Guild on Why You Should Serve Beer With Dinner

Lauren Saria A A From now until we publish the 2016 edition of Best of Phoenix, New Times is naming 100 Tastemakers — members of our local cul…

Published: July 28, 2016 - 4:29 pm @ http://www.phoenixnewtimes.com/restaurants/rob-ful…

Why This GOP Foreign Policy Expert Is 'Horrified' By A Trump White House

A senior fellow at the Council on Foreign Relations, Boot has advised Sen. Marco Rubio (R-FL) and Mitt Romney on foreign policy. He's written …

Published: July 28, 2016 - 4:00 pm @ http://talkingpointsmemo.com/news/max-boot-anti-tr…

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…