New Credit Card Regulations in 2010
On February 2010 the Credit Card Accountability Responsibility and Disclosure (C.A.R.D.) Act of 2009 will be going into effect. This is to protect consumers from abusive credit card practices which helped put our economy into its current state.
So what does this mean for you? The new credit card provisions (link below) on consumer-action.org will give you a full understanding of what to expect from the new credit card act.
Being a credit repair company, one of our favorite aspects of the act is that when you have an existing balance on a credit card you have to be notified 45 days in advance of any rate change. You will also be notified that you can cancel the account before the rate change. If you close or cancel the account, the closed account will not be considered a default under the card-holder agreement and the creditor cannot require immediate repayment of the entire balance.
In addition the creditor must either:
- Structure the balance to be paid over at least five years; or
- Require a minimum monthly payment equal to a percentage of the balance that is no more than twice the percentage required for the old minimum payment. (Effective date: Aug. 20, 2009)
Would you like to read the Credit CARD ACT in PDF?
More Credit CARD Act Information
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It's really hard to say whether these new regulations are going to help the lowly consumer!
Grace Bridges
http://www.debt.uselfhelp.com
[...] Credit Card Accountability Responsibility and Disclosure (C.A.R.D.) Act of 2009 will going into effect next month and we wanted to share another great aspect of the C.A.R.D. Act [...]