Digital News Report – The Credit Card Accountability, Responsibility and Disclosure Act of 2009 took effect today giving consumers protection against what some people call unfair practices by the credit card companies.
From now on credit card companies will not be able to charge you more interest on your card because of mistakes you made with other bills. They will also have to stop using the “double-cycle billing” practice where your interest is computed on the previous month’s average daily balance.
Over the years card issuers have been mailing their bills closer to the due date. Now they are required to mail their statements 21 days before the due date. Companies can not use misleading terms when signing customers up. The new rules will try to eliminate the fine-print.
Consumers will now be able to lower their credit limit. The act should also help limit over the limit fees when a late fee or other fee is imposed. Companies are limited to three fees at a time. Over payments will be applied to the balance with the highest interest rate first.
Card companies must now disclose how long it would take to pay off a bill if customers make the minimum payment. Back in the 1980s card companies realized they could make more money by lowering the minimum payment and stretching out the term of the loan.
By: Tina Brown
Thanks, Tina! Here is a quick video for your readers that explains 4 NEW protections for credit card holders. Give it a look and stay ahead of the game! http://plentii.com/videos/watch/always-money-the-credit-card-act/.