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New Credit Card Law

 
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Old 03-09-2010, 07:41 PM   #1
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New Credit Card Law


Credit card holders can circle February 22 on their calendar as the day when new consumer protections laid out in the Credit Card Accountability Responsibility and Disclosure Act of 2009 kick in.


Following are just a few of the new credit card regulations and consumer protections as a result of the Credit CARD Act:

More Notice for New Interest Rate Changes. Card issuers must give card holders 45-days advance notice in the event of an interest rate change. Additionally, promotional rates must apply for at least six months and, unless disclosed up front, card holders cannot have their rate increased in the first year.

Cardholder Opt-Out. If there are significant changes made to the terms of the account, card holders can choose to reject those changes and will have five years to pay off the balance under the original terms.

Older Age Restrictions Added. Card issuers are no longer allowed to issue a credit card to anyone under 21 unless they can prove they have the means to repay debt or if an adult over 21 co-signs on the account. Credit card companies also face new restrictions on how they can promote cards to college students and can no longer offer free gifts as enticements on campuses.

New Rules for Monthly Statements. In response to complaints that bill due dates were being moved up—and leading to increased late fees—monthly statements must now be mailed or delivered 21 days prior to the due date. Additionally, card issuers can no longer set a payment deadline before 5 p.m. and cannot charge card holders if they pay online, over the phone or by mail—unless the payment is made over the phone either on the due date or the previous day.

Overpayments Go Toward Highest Interest Balances. If the card holder has varied interest rates for different services or accounts, any overpayments must be applied to the account that is incurring the highest interest rate.

Over the Limit Opt-In. Card holders must opt-in to be able to exceed their credit limit—and subsequently be charged an over-limit fee by the issuer. If a card holder chooses not to opt-in, then he or she will not be able to exceed their credit limit and incur any resultant fees.

Increased Disclosure on Minimum Payments. Card issuers must disclose how long it will take the card holder to pay off their bill if they only pay the minimum monthly payment as well as how much the card hold would need to pay every month to pay off the balance in 36 months.

Say Goodbye to Double-Billing Cycles. When calculating finance charges, card issuers can no longer employ two-cycle or double billing—a method that causes cardholders to pay interest on previously paid balances.

To learn more about the new consumer protections, Creditcards.com has a comprehensive breakdown of the Credit CARD Act of 2009.
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Old 03-12-2010, 10:43 PM   #2
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Re: New Credit Card Law


never knew that thanks for putting it out there.

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Old 03-13-2010, 08:29 AM   #3
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Re: New Credit Card Law


All true, and as a result CC issuers will double their rates to compensate for the loss of revenue. I.E. nothing has been accomplished except that there's more, unecassary government regulation which will cost the tax payers more money .
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Old 03-13-2010, 09:25 AM   #4
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Re: New Credit Card Law


They have eliminated some of the worst practices (two-cycle billing, short due dates), but no cap on interest rates. No doubt those will rise.

Not sure how this will cost the tax payers more. I don't think they'll be any more oversight than before.

Credit cards are evil...just say no.
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Old 03-13-2010, 09:56 AM   #5
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Re: New Credit Card Law


Nothing new with Goverment screwing everything they touch. There is a good few clause in the credit card change, but they should have an interest rate cap as well. The reason they don't, Goverment bailed them out, so if they put a cap they could screw themselves by doing so. Everything got a hidden agenda, nothing is given for nothing.

As Goverment and politics go, they all full of s^*T, because if you look at it, everything they touch is broke,i.e. Medicaid is broke, Medicare is broke, social security is broke, the country is broke...right now tax payers carry banks,and this country, but that is not enough...the Health Care still left un-touched but they trying to screw that also up I think the only place a dollar got any value is in Mexico
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Old 03-13-2010, 10:02 AM   #6
 
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Re: New Credit Card Law


Not only that but knocking credit limits down and charging fee if you dont use your card.

Taking away miles, points etc
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Old 03-13-2010, 10:46 AM   #7
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Re: New Credit Card Law


This is the Nanny state that we all want to some degree and don't want to another.

On the one hand we cry how American's don't save money, only want to spend what they don't have and then we cry when the financial system collapses because of American's putting themselves in this position. (Buy a house with no money down, no way to support the mortgage payment if they have one short bad financial set back)

We cry about it and then point the finger at big business and taking advantage of us poor American citizens, offering these easy no money down deals.

Credit cards are the same thing no different.

We cried for regulation that we poor citizens can't be trusted to take care of ourselves financially, that these big bad companies tempt us and trick us into debt.

If you can't be responsible for yourself we have to have the government regulate companies not to take advantage of us.


This is the regulation result.
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Old 03-13-2010, 01:10 PM   #8
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Re: New Credit Card Law


Amen, brother!!
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Old 03-13-2010, 03:49 PM   #9
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Re: New Credit Card Law


Quote:
Originally Posted by DetailHandyman View Post
They have eliminated some of the worst practices (two-cycle billing, short due dates), but no cap on interest rates. No doubt those will rise.

Not sure how this will cost the tax payers more. I don't think they'll be any more oversight than before.

Credit cards are evil...just say no.
They have done nothing but increase fees to the consumer, reduce ability to get credit and make it all around worse credit situation. The cost to tax payers is on paying for more bureaucrats to "oversee", which means earn money an do nothing, and I think the new max credit rate is like 59% or something god awful like that.

Another "Progressive" improvement, what a load of ****?
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Old 03-13-2010, 03:56 PM   #10
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Re: New Credit Card Law


Quote:
Originally Posted by Mike Finley View Post
This is the Nanny state that we all want to some degree and don't want to another.

On the one hand we cry how American's don't save money, only want to spend what they don't have and then we cry when the financial system collapses because of American's putting themselves in this position. (Buy a house with no money down, no way to support the mortgage payment if they have one short bad financial set back)

We cry about it and then point the finger at big business and taking advantage of us poor American citizens, offering these easy no money down deals.

Credit cards are the same thing no different.

We cried for regulation that we poor citizens can't be trusted to take care of ourselves financially, that these big bad companies tempt us and trick us into debt.

If you can't be responsible for yourself we have to have the government regulate companies not to take advantage of us.


This is the regulation result.
Who is this "we" you speak of Mike? I believe government involvement beyond the minimal constitutionally allowed is wrong. Especially the Feds who are always usurping things best controlled at the state and local level.

And just about all involvement by progressives is usually screwed up , right stealing and costly to boot!

"we" should learn to be more responsible for their own actions and quit screwing it up for the rest of us.
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Old 03-13-2010, 05:15 PM   #11
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Re: New Credit Card Law


It's the collective we. And you're included.
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Old 03-14-2010, 07:40 AM   #12
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Re: New Credit Card Law


Quote:
Originally Posted by AFOREMA1 View Post
They have done nothing but increase fees to the consumer,
The CC companies have never needed gov't intervention to make that happen.
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Old 03-14-2010, 12:50 PM   #13
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Re: New Credit Card Law


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It's the collective we. And you're included.
I was never a very good team player Mike.
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Old 03-14-2010, 12:53 PM   #14
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Re: New Credit Card Law


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The CC companies have never needed gov't intervention to make that happen.
yeah well government has never needed a reason to "help" spend our tax dollars either. But it still does not change the fact that this new pile of crap progressive bill has caused a reduction in credit limits and card holders and a dramatic increase in costs. Some help! God I cannot wait until the progressives die and we have a moderate government again.
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Old 03-14-2010, 02:10 PM   #15
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Re: New Credit Card Law


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yeah well government has never needed a reason to "help" spend our tax dollars either.
No argument there!
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Old 03-14-2010, 05:24 PM   #16
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Re: New Credit Card Law


I just got my maximum interest reduced.

I had an old maximum, but never asked for a reduction and paid every balance on time and never saw any interest charge, so it seemed unnecessary. The rate must have increased, but that was 25 years ago when I got the card.

I just do not pay any interest and use every interest free gimmick for major purchases to get away with not paying any interest. The interest-free gimmick may not go away since there are alwaysenough people to miss or be late on a payment to keep the gimmicks working.

Now apparently, they are looking at accounts and gave me a minor reduction since it will not cost them anything in the end. It looks like a good PR move to keep customers from moving away.
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Old 03-14-2010, 09:22 PM   #17
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Re: New Credit Card Law


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I just got my maximum interest reduced.

I had an old maximum, but never asked for a reduction and paid every balance on time and never saw any interest charge, so it seemed unnecessary. The rate must have increased, but that was 25 years ago when I got the card.

I just do not pay any interest and use every interest free gimmick for major purchases to get away with not paying any interest. The interest-free gimmick may not go away since there are alwaysenough people to miss or be late on a payment to keep the gimmicks working.

Now apparently, they are looking at accounts and gave me a minor reduction since it will not cost them anything in the end. It looks like a good PR move to keep customers from moving away.
My buddies dad just got his card, which he has had for well over a decade, interest rates increased into the mid 30% range. Has perfect credit, pays it off in full at the end of the month, so it is not a major issue in his case.

He called them and they told him there was nothing they could do about it for at least 6 months. Told him to call back then and they would reevaluate at that time. Credit card companies suck a**!

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