One Step Back for the Credit Card Comps, One Giant Leap for Mankind

by Minority Fortune

Card Act of 2009

Woo hoo! All hail the Card Act of 2009, short for the Credit Card Accountability, Responsibility and Disclosure Act. The Senate largely voted in favor of the bill in a 90-5 vote. In early April, the House also voted in favor of a similar bill named the Credit Cardholders’ Bill of Rights Act of 2009 by 357-70. The consensus is that the bill could be signed by the President before the Memorial holiday weekend if the bill is merged successfully.

Here’s a look at the perks of the bill in summary:

•    Credit card companies cannot increase interest rates on existing credit card balances unless a customer is at least 60 days late.
•    In the event of an interest rate increase, the credit card company must revert to the original rate after the customer makes six months of on-time payments.
•    Credit card companies must give customers at least 45 days notice of any other interest rate hikes.
•    Billing statements must be mailed 21 days prior to the due date, and companies cannot charge a late fee if a payment is late due to a delay in processing.
•    A credit card company cannot raise interest rates in the first year of a customer relationship, and promotional interest rates must last at least six months.
•    Creditors must adhere to new regulations that will make it more difficult to issue credit cards to consumers under 21
Basically, credit card companies can no longer arbitrarily suck their clients dry with reckless and unmerited interest increases, which has been the industry’s favorite pastime in this current economy. Once again, woo hoo!!

You Answer:

How do you feel about the CARD Act of 2009? Does it matter much to you? Too much or too little?

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