The Credit Card Accountability, Responsibility and Disclosure Act (aka Credit CARD Act) of 2009 passed by Congress take effect on February 22. These new laws are sure to affect consumers and credit card companies alike, for better or worse. Here are the highlights:
GRACE PERIODS–Card issuers must provide minimum 21 days after statement issue date for cardholders to pay their bill, up from the current legal requirement of 14 days. Hopefully this will eliminate many of the exhorbitant $39 or more “late fees” issuers have been raking in.
INTEREST RATES–Issuers must notify cardholders of increases in interest rates minimum 45 days before the new rate goes into effect. The new law also limits the powers of creditors to increase rates and impose fees.
MINIMUM PAYMENTS–Cardholders will be required to make higher minimum payments. However, the new law prevents credit card companies from raising minimum payments at any given time by more han 100 percent–no more having rates go from 3% to 12% with or without cause overnight.
