How the New Credit Card Act of 2009 Can Help You – Part One

Are you looking for better credit card accountability and disclosure? Are you looking for a form of debt relief, with lower credit card charges? Here are some details on the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (CARD). Most of these guidelines will take effect on February 22, 2010.

Rate increases

Rates on existing balances can’t be raised unless a promotion is over, the variable indexed rate changes or if you are 60 days behind on your payments. And if you can prove that you can pay on time for six months, they will have to restore the lower rate. Subject to exceptions, rates can’t increase in the first year of having the card, and promo rates must last at least six months. Remember, these credit card accountability and disclosure provisions don’t apply all the time. Rates can be increased on new balances, with a 45-day advance notice. Read and keep everything creditors send to you.

Advance notice

Important contract changes, like rate increases, require 45 days’ notice. This requirement was implemented August 20, 2009. Again, there are exceptions, such as limit changes. However, this is still under the new notification rules if there is a chance of an overlimit fee.

Restrictions

Overlimit fees cannot be allowed by the creditor without the cardholder’s consent. They also can’t charge more than one overlimit fee for every billing.

This can also apply to fees that are designed to force cardholders to pay their credit card debt immediately. Payments on the due date itself will not trigger late fees.

Student age limits

People below 21 years old will be required to have a co-signor who is 21 years of age or older. This restriction applies if they have no proof of independent income.

Read up on more details about the credit card act of 2009 and its “debt relief” guidelines in the second part of this article.

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