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7 good things the Credit CARD Act will do for you (Interest.com)

January 4, 2010 by  
Filed under Articles and Features

interestlogoCredit cards have treated their customers pretty badly in recent years. There was little any of us could do as they raised interest rates, slapped on fees, cut credit limits and imposed onerous new terms.

But the Credit Card Accountability, Responsibility and Disclosure Act of 2009 that Congress passed last spring is supposed to put an end to the most abusive practices.

Here are 7 good things that will happen for you when most of the new regulations take effect Feb. 22, 2010:

Good thing 1: No more universal default.

This was the single biggest penalty cardholders could face: a big increase in the interest rate because they were late with a payment to another creditor.

Let’s say you didn’t get your electric bill in on time. The power company tattles to the credit agencies, and your credit card spots the snafu during a routine check of credit reports.

It decides you’re a deadbeat in the making and imposes a high-risk default rate of 28% on your account — twice the 14% you had been paying — usually without notifying you in any way.

A few months go by, and you start wondering why the finance charge on your credit card suddenly shot up. You take a closer look at your bill and are shocked to see the interest rate.

You call the customer service number and weeks if not months of negotiations ensue as you try to get the rate reduced.

Those days are over.

The Credit CARD Act says credit cards can’t raise your interest rate based on your record of paying other bills.

Read the full article at Interest.com.

 

 

Comments

One Response to “7 good things the Credit CARD Act will do for you (Interest.com)”
  1. Casey Quelch says:

    Would you like to post a guest post on my blog?

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