New Credit Card Regulations

FoolProof has some breaking news for you. Back in August 2009 a new credit card act came into effect, the Credit Card Accountability, Responsibility, and Disclosure Act of 2009. This act protects you as a credit card user and puts rules on the issuer. It makes the issuer provide better disclosures about credit card terms and prevents some of the worst practices done by the credit card industry. But what do these rules mean to you? Take a look!

 

Here are just a couple key points as to what this new act does to help you:

1.)    Credit card issuers must notify the customer or member 45 days in advance of any significant changes to the terms. This includes increases in the Annual Percentage Rate (APR) on fixed rate cards, changing the interest rate term from a fixed rate to a variable rate or vice versa, increases to any fees, changes to minimum payment requirements, changes to the method for computing balances, and a reduction or elimination to any grace periods.

2.)    Billing statements must be mailed or delivered electronically at least 21 days before the due date.

3.)    A grace period must be at least a 21 day period extending from when the statement is mailed.

 

Additional protections will begin to take place in February of 2010. To find out more information about the new credit card rules visit   http://ie.foolproofonline.info/shellfcu/report/creditcardrules10_09/