Credit Card Act of 2009
The federal Credit Card Act of 2009 includes a number of sweeping reforms that change how credit card companies are allowed to operate. The new law specifically tries to address problems with the credit card industry that have contributed to mounting personal credit card debt. It aims to improve transparency in this often mystifying industry so that consumers are better informed of changes made to their accounts and policies. If you currently have one or more credit cards, and especially if you are in debt, the Credit Card Act of 2009 could help improve your financial situation.
Advance Notice of Interest Rate Hikes
One significant improvement is that the new law requires creditors to communicate more effectively with their customers. For example, credit card companies are now required to inform their customers of interest rate increases at least 45 days in advance. As a customer, this allows you to prepare for the interest hike and also gives you time to shop around for a card with a lower rate if you are considering switching. The law also allows customers to cancel their cards and repay the remaining balance on schedule at their current interest rate if their card company increases the interest rate.
Protection from Due Date Traps
The Credit Card Act of 2009 includes several provisions that protect consumers from being manipulated into making late payments against their will. Instead of being required to mail bills only 14 days before the due date, companies must now send out bills no fewer than 21 days prior to the due date. This gives customers time to receive their bill, view it, organize funds, and pay the bill. Another protection prevents the credit card companies from changing the day on which a payment is due. The day must remain the same from month to month. The due date is not allowed to fall on a weekend or holiday and must instead be pushed back to the next business day.
Contact Us
These are just some of the many provisions that provide further protection for consumers against credit card companies. To learn more about the Credit Card Act of 2009 or to talk to a professional about your personal or business debt obligations, contact the New Orleans debt negotiation attorneys of Kervin & Young, LLC today at 504-599-5906.