The new federal credit card law will enter into force on February 22, 2010 in most cases. There are many changes and will affect most people who manage credit card accounts. Consumers who often make credit cards "floating", that is, consumers who habitually have monthly payments below the total are particularly affected.
An unfortunate card user who falls below the minimum monthly payment amount (in many cases, as long as you are considering a bank as an option) always falls into this category. Here is a summary of the most important changes.
Limitations of fees: Card holders are not charged beyond the limit unless creditors initially approve the limit transactions, and that they are charged beyond one limit per billing cycle Yes. Issuers can not charge a fee for "convenient" payment made on the phone or the Internet. We may charge a fee only to speed up payment. The payment received by the due date shall be exempted from the fee which is delayed for the card member. If an account is paid at the local branch, you need to deposit it on the same day.
A credit limit or a nearby card holder faces a common problem at checkout when the merchant notifies the purchaser to purchase beyond the card limit. Unlike previous rules, which assume that a transaction is refused, the credit card company can send a written contract to the cardholder asking whether to agree to the fee in this scenario. Those who agree with this "opt-in" function can make the intended purchase, but the fee will be charged in the process.
Changes to advance notice: Cardmembers must receive notice at least 45 days in advance before the interest rate is raised. (In the truth of the current loaning law cardmembers will only receive a notice of 15th.) However, if the issuer lowers the limit amount, there is no need for notification unless penalties such as limit overdraft fee occur.
Note: The new rule does not set interest rate limit.
Rising retroactive rate: Issuers can not raise interest rates on existing balances except at the expiration of the promotion rate period or when the variable index rate rises according to the conditions previously agreed by the cardholder. Payments of more than 60 days at the latest are fully disclosed in the original Cardmember Agreement (If the cardholder's 60-day delinquency causes a charge increase, the cardholder makes a contractual scheduled payment of 6 months If you achieve, you will have to recover the lower rate). Issuers can no longer implement a rate hike under "universal default" or similar provision.
Double cycle charge
Even if the previous balance was refunded from the previous month, the new law prohibits two-cycle billing as it calculates the financial tax with the balance of both current and previous times. In short, it is illegal to rescue cardholders who already have significantly delayed payments due to the above changes, and save cardholders including late fees and penalties far exceeding credit limits.
Settlement, reorganization / consolidation, or bankruptcy should be considered for such consumers without expecting an increase in available funds that will enable debtors to obtain cash. In order to avoid these more serious options, the new federal credit card law may provide adequate breathing room.
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