Newest Credit Card Laws 2010 takes effect now? Locate how the newest credit card reform can be helpful for your personal and business finances. In this article the author will tell you six ways how the new credit card rules help protect your finances.
What are the Newest Credit Card Rules? What the new credit card law means for you? The new credit card law will bring sweeping changes to the credit card industry and make cards easier to understand for consumers. The CARD Act: New Credit Card Laws. Here we shall read and study it now.
Newest Credit Card Laws 2010 Characteristics: Limited interest rate hikes, More time to pay monthly bills, Highest interest balances paid first, Limits on over-limit fees, No more double-cycle billing and lower subprime fees and Minimum payments.
Credit Card Support Reviews: Newest Credit Card Laws 2010 Help Protect Your Personal Finance. The newest credit card laws of 2010. Rules take effect as of now, marking a huge, significant turning point for American consumers. For a long time, credit card companies have had once ruled the empire of free rein to employ deceptive, sneaky tactics that hit up responsible consumers with incredibly unreasonable costs. But now, we are moving this balance of power back to us, the consumer, and we are now holding cc companies accountable for their actions.
All the cash we THOUGHT was going towards our computer, was instead diverted toward smaller purchases that we would have preferred to pay off at a later time.
Beginning Monday February 22, 2010 the cc company act of 2009, signed into a law last may which will end what consumers have called unfair, deceptive and sneaky business tactics.
Be careful of these rule changes. Number 1, stick to a fixed card rate, be carefully and review your rewards program options, there is a possibility that new service fees are incorporated for these programs. Be cautious of foreign use of cards. There are companies which may drill you with heavy fees for using your card in foreign transaction territories which could mean online transactions.
Finally, under new laws, you may have to think about canceling a few of your cards.
The Credit Card Consumer groups mention that the law is a great beginning step in protecting customers from the more insane tactics of the cc companies but those companies still have some tricks up their sleeves, so consumers still need to be on alert.
The new rules do not absolve customers from their obligation to finish paying off their bills, however, they finally equal out the field so that each and every family and small businesses using cards have information they will need to make responsible financial decisions.
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What is the Latest Credit Cart Act? How do you like it? Is it helpful?
You may remember that a new regulation called the CARD Act became law back in May of 2009. The name is an abbreviation for the Credit Card Accountability, Responsibility, and Disclosure Act. The rules for the legislation didn’t go into effect right away, but instead were scheduled to roll out in three separate phases. The first phase was in August of 2009, the second phase goes into effect this week—on February 22nd, and the final phase will be in August of 2010.
New Credit Card Rules that Begin from August 2009
Here I covered the first round of rules in a previous post, but here’s a quick recap of the three most important points that became law last year. Those credit card rules require creditors to:
Give you written notice 45 days in advance of making any substantial changes to the terms of your account, such as hiking your interest rate or increasing your fees.
Inform you in writing that if you don’t accept their new terms, such as additional fees, you can close your account and pay it off under the old terms.
Deliver your account statements electronically or by mail at least 21 days before your payment is due.
Newest Credit Card Rules that Start February 2010
Newest Credit Card Laws 2010 Help Protect Your Personal Finance. The newest regulations deal with many of the issues that are the most important to consumers like unexpected interest rate increases and fees. The second round of credit card reform, that goes into effect this week, is the most extensive. The regulations deal with many of the issues that are most important to consumers, like unexpected interest rate increases and fees. So, if you’re ready, here are six ways the new credit card rules can help protect your business and finance:
1. Interest rate increases can’t happen easily. For fixed-rate cards, your interest rate can’t be hiked on an existing account balance unless you’re at least 60 days late making a payment. For new accounts, the rate can’t be increased at all during the first year, if you’re paying on-time. But for variable-rate cards, the interest rate can always increase or decrease based on the index it’s linked to, such as the prime rate. However, when a creditor offers a promotional interest rate for any type of card, they have to honor it for at least six months.
2. Over-limit fees are limited and must be permitted. You’ll have to give your consent for a creditor to charge an over-limit fee on your account—that’s a penalty for accruing a balance that exceeds your credit limit. You may be thinking why would I ever give permission to be charged a credit card fee? Well, I don’t recommend it, but if you do agree to over-limit fees you’ll never have to worry about having a charge denied due to insufficient credit. The good news is that you can only be charged one over-limit fee per billing cycle. Also you can’t be charged an over-limit fee if the reason you go over your limit is due solely to interest charges or fees, and not due to your spending.
3. Late fees and payment fees are restricted. You can’t be charged a late fee if your payment is received by 5:00 pm on the due date, but doesn’t get posted to your account. Nor can you be charged a late fee when your payment arrives on the business day that follows a due date that happens to be a weekend or holiday. Now you can make a payment any way you like—by mail, phone, electronic transfer, or online—and creditors can’t penalize you for it (however, they can charge you a service fee to expedite a payment).
4. More account information will be at your fingertips. Creditors now have to make your account terms and agreements available online. They’ve also got to beef up your monthly account statement with disclosures. They have to tell you how long it would take to pay off your balance if you only made the minimum payment each month. The statement also has to show the payment and interest that you’d need to pay in order to eliminate your full account balance within three years.
5. The highest interest portion of your debt gets credited first. When you make a payment that exceeds the minimum monthly amount due, it’s allocated to your highest interest balance first. For instance, if you made a higher-interest transaction, such as a cash advance, that balance would be paid down before any balance you have for regular purchases.
As great as the credit card reform is for consumers, there are still credit traps to be aware of.
Carbonite Network: Latest Credit Card Rules
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Be Aware of Credit Traps: Ok, back to credit traps that the CARD Act doesn’t address. The new regulations don’t put any restrictions on:
how high credit card interest rates can go
how much newly-invented credit card fees can be
how much your credit limit can be reduced
The new regulations also don’t apply to business credit card accounts (the regulations only apply to consumer cards). So be sure to read each month’s credit card statement very carefully and watch out for increases in rates and fees and decreases in your credit limit. Also be on the lookout for brand new fees that card issuers may try to slip in to increase their revenue, such as “processing” fees or “inactivity” fees.
Useful Credit Card Tips for You
You know that in order to use credit cards wisely, you should never charge more than you can pay off in full each month. But if you have to carry a balance for a special purchase or because you get stuck in an emergency situation, always use a card with the lowest interest rate and fees that you can find. Compare current offers at sites like creditcards.com, cardratings.com, and creditcardguide.com. Keeping your credit score as high as possible will make you eligible for the lowest interest rates out there.Now that President Barack Obama has signed a federal law to protect millions of consumers who rely on credit cards, we’re in a new era of managing credit. The new law contains the most far-reaching changes to the credit card industry in decades.
Newest Credit Card Laws 2010 Characteristics: Limited interest rate hikes, More time to pay monthly bills, Highest interest balances paid first, Limits on over-limit fees, No more double-cycle billing and lower subprime fees and Minimum payments. But what will the credit card law mean for cardholders? What is the Latest Credit Cart Act? How do you like it? Is it helpful?
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