Will The New Credit Card Laws Bring Relief To Credit Card Holders?
You can find plenty of conflicting information regarding the new credit card laws scheduled to be fully implemented February 2010.
After listening to the complaints concerning unfair credit card practices, the US Federal Government has passed legislation to protect credit card holders from unfair or confusing practices by card issuers.
Millions of Americans will see a host of improvements on their credit card accounts, but unfortunately, many have already begun to see higher interest rates and new charges as well.
Credit card lenders have been complaining that the new laws governing credit cards will make it tougher for them to make profits. PLEASE!!! After several years of record profits, that's hard to believe.
The credit card companies are expected to earn nearly 4 billion dollars this year from fees, but the new credit card laws will impose tighter restrictions on them very shortly.
Credit card companies are looking for creative ways to add fees to card holders and recover the potential loss of revenues. Many have already begun to impose new fees that have never been charged previously.
In spite of the new laws, competition is still fierce for consumers with good or excellent credit scores.
Likely due to the credit crisis and the new credit card laws, lenders have shortened the introductory periods on balance transfers to 6 months.
One practice being phased out due to the new credit card laws is Universal Default. Universal Default occurs when a creditor raises the rate of interest on a credit card based on your paying patterns and frequency on any of your other bills. (You can read more about Universal Default - The Contagious Misery Of Credit Card Debt here.)
What You Need To Know About The New Credit Card Laws
Credit card companies cannot increase the annual percentage rate (APR) during the first 12 months of opening up a new account.
45 Day Notice of Increase
Extended Grace Periods
No Floating Due Dates
On Time Payments
More than Minimum Payment Applies to Highest APR Balance
The Effects Of Minimum Payments
Billing Statements Include Interest and Fees
Free Payment Options
By eliminating some of the arbitrary charges that lenders impose on consumers, the new credit card laws will level the playing field and make borrowing money a bit fairer.
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The true measure of a man is not how he behaves in moments of comfort and convenience but how he stands at times of controversy and challenges.
~ Martin Luther King Jr.
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To achieve financial freedom, ideas such as: listening to good advice, learning how to make a budget, understanding credit repair possibilities, avoiding the scams, and generally becoming more knowledgeable of the credit card business, can all play a role in eliminating credit card and other debt. There is A smarter way to manage your money.