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Debt Solutions Made Easier By New Credit Card Laws

[Mar 5, 2010.]

 

Debt Solutions Tangible with New Credit Card Regulations

It is pretty hard to come up with a reasonable debt solution when credit card companies can change the game at half time! No more, new credit card rules went into effect on February 22, 2010. The Federal Reserve, the banking regulator, stepped in and took action to protect consumers. They have even launched a new Web site designed to inform you about the new rules and to help you get out of debt. Familiarize yourself with these new rules so that you know what to expect from your credit card company. If you are not getting everything you have a right to, you will know to call customer service and set things right.

Credit Card Laws: A Summary of What's New

  • Your credit card company cannot raise your interest rate without giving you at least 45 days notice in writing.
  • They cannot raise your rate within the first 12 months of opening a new account.
  • When they raise your rate, it can only apply to new purchases. This does not apply if you become seriously delinquent.
  • You can opt out of having a transaction approved that will take you over your credit limit, causing a fee.
  • Your statement will show you how long it will take to pay your balance in full making just the minimum payment. It will also tell you the payment you would need to make to pay the balance in full in three years.
  • The credit card company must mail your bill at least 21 days before it is due and it must be due on the same day of each month. If your due date falls on a holiday or weekend, your payment is automatically due the next business day.
  • When you pay in excess of the minimum payment, the extra money must be applied to the highest interest balance first.
  • Credit card companies can only charge interest for the current billing cycle. No more double cycle billing.
  • Applicants under the age of 21 must prove their ability to repay or have a co-signer.

Get Out of Debt Faster

These new rules can encourage as well as help you get out of debt more quickly. Credit card debt can be a serious drain on both your finances and peace of mind. Make it a priority to get out of debt. Find a debt relief counselor or seek a credit card debt consolidation loan.

 

About Author:

Renee Morgan has been a loan officer for over eighteen years. She is also a freelance writer and guest expert for radio and TV.

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