Many consumers are unaware of the changes in the Credit Card
Accountability Responsibility and Disclosure Act (Credit Card) of 2009.
However, these changes will affect every credit card user in the nation. The changes are
set to take place in two different segments: one went into effect in August 2009
and the other is set to take effect in February 2010. The Better Business
Bureau of the Southwest offers a brief summary of some of the changes created
by the Act.
Credit CARD Act of
2009 –Some of the August Changes
- Creditors
must provide written notice to consumers 45 days before an interest rate
increase or making a significant change to account terms.
- Creditors
must inform consumers in the same notice of their right to cancel the
credit card account before the increase or change goes into effect.
- Creditors
must mail or deliver statements for credit cards and other open-end
consumer credit accounts at least 21 days before payment is due.
Credit CARD Act of
2009 – Some of the February Changes
- Due
dates for bills must be on the same day each month. If your due date falls
on a day that the creditor does not accept payments by mail, the creditor
cannot treat a payment received the following business day as late.
- Credit
card companies will be prohibited from raising interest rates on existing
balances unless the borrower is more than 60 days delinquent or the
increase is stated in the contract.
- Consumers
under the age of 21 will be required to have a co-signer and will have
restricted credit limits. Creditors will not be able to raise interest
rates in the first year unless specified in the contract; and they will be
required to give more advance notice before raising rates on future
purchases.
- There
are other new protections for college students and young adults, including
a requirement that card issuers and universities disclose agreements with
respect to the marketing or distribution of credit cards to students.
Other important changes that consumers should read up on are
that the act ends late fee traps, enforces fair interest calculation, requires
Opt-In to Over-Limit Fees, restrains unfair sub-prime fees, and limits fees on
gift and stored value cards. For more information on H.R. 627 go to The
Library of Congress website at
www.thomas.loc.gov or visit
www.whitehouse.gov.
The BBBSW understands that many consumers are already
struggling to get out of debt. The new Credit Card Act of 2009 will help ease
some of the pain faced by consumers. Here are some more tips to help solve
credit problems:
1.
If you want to dispute a credit report, bill or credit denial,
write to the appropriate company and send your letter “return receipt requested”.
2.
When disputing a billing error, include your name, account
number, the dollar amount in question, and the reason you believe the bills is
wrong.
3.
If in doubt, request written verification of a debt.
4.
Keep all your original documents, especially receipts, sales
slips, and billing statements. Only send in copies and always keep your
originals.
5.
Be skeptical of businesses that offer instant solutions to
credit problems: There aren’t any.
6.
Be persistent, resolving credit problems can take time and
patience.
7.
There is nothing that a credit repair company can charge you
for that you cannot do for yourself for little or no cost.
For more information, contact the BBBSW at
www.bbbsw.org or by calling 800-873-2224.
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