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The Credit Card Act of 2009

 

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The Credit Card Act of 2009

The Credit Card Act of 2009 was put in place to address issues consumers were having with excessive interest charges, among other things, and to help the consumer get off the credit card highway. With fees and interest charges, the credit card companies were earning billions of dollars a year while the average consumer was not able to reduce the principal balance on their credit cards.

  • Interest Rates May Not Be Increased in the First 12 Months
    Under the Credit Card Act of 2009, credit card companies may not increase the interest rate on your account for the first twelve month. That rule does not apply if you signed up for a variable rate and is attached to an index rate that fluctuates within that first year. Interest rates may also go up after, at least, six months if you've obtained a card with an in introductory rate and it has expired. Credit cards can also increase the interest rate if you have a payment that is 60 days late or longer. Also, interest rates can be increased if you've negotiated a payment plan with the credit card company but fail to make a payment on time.
  • Interest Rate Changes Can Only be Applied to Future Purchases
    If the credit card company raises your rate after the first year, the new rate can only apply to future charges. Any prior balance will only be charged at the prior interest rate. The Credit Card Act of 2009 requires lenders to notify at least 45 days in advance of a scheduled rate increase.
  • You Have the Option to Reject the Interest Rate Change
    If your company notifies you of an impending interest rate change you have the option to cancel the card before that new rate takes effect. However, if you opt to reject the interest increase that may mean your card is cancelled. It may also mean the credit card company can increase your minimum monthly payment, or may require you to pay off the balance on the account within five years.
  • Interest Rates and Overall Costs Must be Clearly Stated
    Credit card companies are now required to provide additional information on you monthly statement including the length of time it would take the consumer to pay off the balance and how much the interest will cost you over the period of several years.
  • Payments Must be Applied to the Highest Rate Balance
    If your payment is made for more than the minimum requirement the difference must be applied to the highest rate balance. This rule does not apply if you currently hold a credit card with a deferred interest plan. Credit card companies may also not access interest charges on balances in the current billing cycle.

Americans are having trouble paying off their credit cards - and it could spell trouble for the economy

US credit-card delinquencies are rising, a potentially ominous sign for the economy. Americans now have more credit-card debt than before the financial crisis - over $1 trillion. US household balance sheets are better positioned than before the recession ...

Published:  Tue, 21 Nov 2017 20:25:00 GMT



How to still have a merry Christmas if you're struggling with credit-card debt

It's almost Black Friday. Do you know where your credit cards are If you're like many Americans, you know exactly where they are and you're preparing to use them. The Federal Reserve numbers include not just credit card debt, but also mortgages, student ...

Published:  Tue, 21 Nov 2017 03:15:33 GMT



App helps users maximize credit card rewards

GOLDEN VALLEY, Minn. - When you pay, you earn. Rewards like flights, hotels, even cash back. But are you using the best credit card for you "When someone has multiple cards in their wallet, they're missing out on around $200 a year in rewards," said Alex ...

Published:  Tue, 21 Nov 2017 18:38:00 GMT



The 7 Best Credit Cards For Holiday Shopping

With Black Friday and Cyber Monday just around the corner, it seems appropriate to look at some top credit cards for holiday shopping. Before we look at these card options, however, a word of caution. According to a recent Nerd Wallet study, nearly 25% of ...

Published:  Mon, 20 Nov 2017 08:32:00 GMT



3 Busted With Forged Checks, Credit Card Scanner In Darien: PD

DARIEN, CT - Three New York suspects were arrested on fraud and larceny charges on Nov. 16 after Darien police caught them with forged checks and credit card scanning device in the parking lot of the TD Bank on the Post Road. Before being charged two of ...

Published:  Tue, 21 Nov 2017 15:43:00 GMT



Police: Woman charged with identity theft after car break-in victim's credit cards were used at Norridge mall

Norridge police said a 22-year-old Chicago woman was charged with identity theft on Nov. 7, after a car break-in victim's missing credit card was used to rack up more than $1,000 in purchases at stores at Harlem Irving Plaza. Breeann Taylor, of the 3300 ...

Published:  Tue, 21 Nov 2017 12:56:00 GMT



One major way U.S. credit-card debt is getting worse

Americans are increasingly delinquent on their credit-card debt. Credit-card delinquencies have increased this year, according to a new report released this month by the New York Federal Reserve. Some 4.6% of credit-card debt became 90 or more days ...

Published:  Mon, 20 Nov 2017 13:20:00 GMT



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