It’s a week into the new laws being passed against banks and credit agencies. It’s still too early to decide just how much the CARD Act will hinder banks’ sneaky ways. However, we’ll focus on the much needed improvements and how they’ll serve credit card and banking consumers. It’s one step forward for the moment, and Main Street needed to feel something added legally in their favor for once by Congress.
We’re most excited about the fees banks will occur if they breach the new act. They’ll have to pay anywhere between $500-5000 per illegal occurrence. Talk about returning the favor! So, if you notice any breaches from your credit or banking service, report it!
Outlining the Details of the CARD Act:
1. Rates & Fees: Those random excuses to raise credit fees in the name of “just because”…Yeah, bye-bye…for now. Now there are set rules in place that indicate the reasons for an increase in your interest rate, which are:
- Signing an agreement that states your interest rate is/was variable rate
- Signing an agreement that had or has a promo/teaser rate
- The minimum payment hasn’t been paid in 60 days.
- You cannot be charged an over-the-limit fee unless you opt-in.
2. Statements: They must be sent out at least 21 days before payment is due.
3. Payments: Three great things:
- Have a consistent due date each month
- Must count as paid on-time if paid before 5 PM.
- Allow payments to count within due date if sent the next business day after a holiday
4. Age Restrictions: All individuals under 21 will not be allowed to sign up for a credit card unless:
- They have a co-signer
- They can verify that they receive enough income to maintain credit
5. Prepaid & Gift Cards: Gift cards, gift certificates, prepaid cards, or store gift cards cannot be charged additional fees, with the exception of a initial issuance fee.
Check out this chart from Bill Shrink.com for a visual:
Find the best credit cards at BillShrink.com
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