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
Double-Dip Recession On The Way?
Today in Beijing, Barack Obama warned of a so-called double-dip recession. According to Obama, if government debt was to climb too high, it could lead to another recession. With rising US deficits, Obama told Fox News today that the White House “faces a delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.”
With a current unemployment rate of 10.2% in the United States, the administration is mulling over the idea of instituting various tax incentives that could encourage businesses to hire new employees sooner than later. However, Obama said:
“I think it is important, though, to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the US economy in a way that could actually lead to a double-dip recession”.
The budget deficit has gone past $1.4 trillion, which is roughly 10% of the total economic output of the 2009 fiscal year. This can mostly be blamed on the bailouts and public spending project designed to drag the US out of the recession.
China has also raised some concerns about the spending by the US government, as they are the largest foreign holder of US debt.
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Is FreeCreditReport.com Actually Free?
Free Credit Reports
The FTC has recently started up its own advertising campaign to alert consumers that freecreditreport.com is not actually free. Like, freecreditreport.com’s commercials, the FTC has started airing their own commercials depicting a group of 3 people who sing songs similar to freecreditreport.com’s videos. However, in FTC’s videos, the lyrics go “Other sites may turn your head; they say they’re free, don’t be misled. Once you’re in their tangled web, they’ll sell you something else instead.”
FTC Spoof Credit Report Commercial
AnnualCreditReport.Com
The FTC has a website dedicated to educating consumers about their right to receive a free copy of their reports, once a year, from all 3 credit bureaus.
According to the site:
“AnnualCreditReport.com is the ONLY authorized source to get your free annual credit report under federal law. The Fair Credit Reporting Act guarantees you access to a free credit report from each of the three nationwide reporting agencies — Experian, Equifax, and TransUnion — every twelve months. The Federal Trade Commission has received complaints from consumers who thought they were ordering their free annual credit report, but instead paid hidden fees or agreed to unwanted services. Don’t be fooled by TV ads, email offers, or online search results. Go to the authorized source when you request your free report.”
It’s not that there is anything wrong with the credit reporting agencies charging you for a copy of the credit report, if you’ve received your free copy already; it’s that by signing up with freecreditreport.com you will be automatically enrolled in their online credit monitoring service. The cost for this service is around $15 per month. While it seems like a good idea to monitor your credit reports on a daily basis, most consumers would never need this. Credit monitoring services would be a useful and almost necessary tool for victims of identity theft. Users can receive “real-time” updates about changes to their credit reports in their inbox. Most consumers, however, will not need to be notified every single time an inquiry is placed on their reports.
The New York Times explains that:
“…Experian is the biggest player in the lucrative niche of selling monthly monitoring. Nine million people are spending a total of $650 million to $700 million annually on the services, according to Carter Malloy, a Stephens Inc. analyst. Experian’s market share is more than twice that of its three main competitors combined. To replenish its rolls, the company relies heavily on its slacker ads, spending $54 million in 2008 to blanket the airwaves, according to TNS Media Intelligence.”
How to get your Credit Reports for FREE
Do not be confused by the deceptive ads from Experian. If you want a free copy of your credit report, head over to AnnualCreditReport.com where you will never be asked to enter a credit card number. Keep in mind that you are only entitled to one copy of your report from each bureau per year. If you require additional copies, you can order your reports directly from each bureau for a one-time fee. The cost for this is usually between $5-7 or about half the cost of one month of a credit monitoring service.
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7 Economic Indicators
from Wikipedia
An economic indicator (or business indicator) is a statistic about the economy. Economic indicators allow analysis of economic performance and predictions of future performance.
The Seven Economic/Business Indicators
- Manufacturing (ISM) : Activity slipped slightly in September but marks the second straight month above contraction levels.
- Job Growth : More jobs were lost in September than expected and unemployment rate hits 26-year high of 9.8%.
- Consumer Confidence : Index of consumers’ moods declines surprisingly in September, highlighting concerns about weak retail sales at year end.
- Leading Indicators : The Conference Board Leading Economic Index™ (LEI) for the U.S. increased 0.6 percent in August, following a 0.9 percent gain in July, and a 0.8 percent rise in June.
- Inflation (CPI) : Key measure of inflation up 0.4% on month-to-month basis, but annual measure remains lower.
- Industrial Production : Government reports show industrial production rose in August for the second month in a row, while consumer prices edged higher on gasoline costs.
- Retail Sales : Cash for Clunkers program helps rev up auto sales, with overall index up 2.7%.
Source
Credit Repair Organizations Act
The Law for Credit Repair Companies
Credit repair companies need to adhere to the Credit Repair Organization’s Act (CROA) and we thought we should help consumers to understand it. Here is a summary of the important parts of the CROA that you will need to understand.
What is the Purpose?
There are 2 main purposes for the CROA.
- To ensure that prospective buyers of the services of credit repair organizations are provided with the information necessary to make an informed decision regarding the purchase of such services
- To protect the public from unfair or deceptive advertising and business practices by credit repair organizations
What is Prohibited?
The most important thing to know here is that you should not make any payments in advance.
Disclosures and Contracts
Each credit repair company is required to send you a copy of your Consumer Credit File Rights. Read these carefully! You may also cancel your contract within 3 days without any penalty. Be sure to check the contract and make sure the credit repair company is;
- Listing Payment Terms
- Describing, in detail, the services offered
- Check for Guarantees
- Estimated time of completion
Read the Credit Repair Organization’s Act