The CARD Act also known as The Credit Card Accountability Responsibility And Disclosure Act of 2009 Or the
Credit CARD Act of 2009
Some call it the credit card reform of 2010
I call it a start!!
Here are the Changes
I'll list the changes I like the best and that is the restriction of over-limit-fees.
Well...some are calling it the restriction others the prohibition but the original language of the bill is the required opt-in.
for most people who are in control of their finances over-the-limit
fees are not much of a concern. But we've all had those emergencies (at
least most of us) where you don't care (the car transmission blew and you
just want to go home).
Those are the times you would actually agree to such a fee.
What this card act change has brought in the Acts' own language is....prevention of unfair or deceptive acts or practices in connection with the manipulation of credit limits designed to increase over-the-limit fees or other penalty fees.
Thank you....I'm sure we all have stories of that happening to us!!!!
MORE RESTRICTIONS ON FEES
Another card act reform is no more fees on payments including phone or any means except by an expedited one that requires the service of a live customer service representative.
Card act changes that make a difference
A more lengthy Card act reform is the 45 day notice requirement on major changes to the card agreement.
I say it's lengthy as it applies to many instances.
Another credit card reform I like is that accounts must now be reviewed every 6 months.The same methodology used to increase the rate of an account must also be used at review time and if it shows a reason to reduce the rate it must be done.
Many times new accounts opened are given an attractive rate to start and then that rate is quickly taken away.
If you pay any amount over the minimum balance the extra amount must go toward the balance with the higher interest rate.
That sneaky old practice of raising interest rates by using your problematic accounts with another creditor as the basis for raising the rate with your account with them is now prohibited.
Protection of young consumers
Those under 21 must now either have a co-signer over 21 on the account or Show proof of income.
Shouldn't they have had income anyway????
Maybe this should be called "protection of the parents of children under 21"!!
Young consumers are often targeted (mostly for THEIR inexperience,) the next set of changes are for their protection.
Card act being an amendment to the Truth in Lending Act now requires
billing statements to include a disclosure that states the total time
and interest it will take to pay the card off making only the minimum
That ought to open the eyes of some that do too much impulse shopping!!
It also must state the monthly payment needed to pay the balance off in a 36 month period and a toll free number for credit counseling and debt management services.
In general many of these changes will make it harder for the younger consumer or those with bad credit to get credit.
The true fact is that the previous ease of those who never should have been qualified for credit or for the extreme limits that were given by creditors who were motivated by greed instead of reasonableness has in part led this country to the economic problems of today.
Even if you do find yourself in a difficult to get credit situation, know this, that with knowledge, planning and good helping of self discipline anyone can work towards being qualified for credit.