by Alexis Cala, PICurrent Assistant Producer
Courtesy of The Consumerist
Unfair rate hikes and dishonest billing practices by credit card companies may be a thing of the past with new guidelines from the Credit Card Act of 2009 taking effect soon.
Nearly 90 percent of Americans have a credit card and almost half have a balance to pay off. This puts a lot of people in a position to be taken advantage of. Fortunately, the Credit Card Act seeks to protect consumers and keep card issuers honest. While a large chunk of the legislation doesn’t take effect until February 2010, card users will begin to see a little more protection starting this week (read the full story on Reuters).
If you have a credit card you can look forward to a few improvements:
- Banks must allow at least 21 days for customers to pay their monthly bill and give 45 days notice of any changes to rates or fees (before customers were only given 14 days to pay and 15 days notice of changes)
- You will be able to reject contract changes you don’t agree with and make arrangements to cancel the debt and close the account.
- Protection against exceeding your card limit
More changes to watch for:
- Limits on fees
- Bans on unfair rate increases
- Plain language and more disclosure
- More access to account activity and terms
- More protection for students and young card holders
While changes to the current laws will help, you can also do your part to make sure your credit cards and debt stay manageable. Check out The Beehive for a great resource section on credit counseling and how to stay out of debt.
WOW! your website have the great information about credit.I’m sure I will be back agian
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