Overview of the Credit CARD Act of 2009
The Credit CARD Act of 2009 is a new piece of legislation that was passed into law and went into effect in February 2010. It puts new restrictions on credit card companies to protect consumers from unfair or deceitful business practices. Consumers will likely find that their dealings with credit card companies are more transparent after this law goes into effect and will feel more informed of their rates, contract details, fees, and more. The Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A. provide an overview of the new law below.
Protections for Cardholders
The Credit CARD Act contains a variety of new protections that are designed to help consumers with several aspects of having and using a credit card. The following is a list of some of the protections from which cardholders can expect to benefit:
- Protections Against Interest Rate Increases Made Arbitrarily. If credit card companies decide to raise your interest rates, they must provide 45 days notification. You have the right to cancel your card and pay off your remaining balance at your current rate and payment schedule.
- Protections for Cardholders Who Pay On Time. If you have your rate increased and pay on time for six months, your rate must be reduced back to what it was before the increase.
- Protections from Deceitful Due Date Scams. Mandates that the credit card companies must mail out a bill 21 days before the due date and that due dates cannot fall on a holiday or weekend.
- Protections to Consumers under 21. Prevents individuals under the age of 21 from obtaining a credit card, unless she or he has a co-signer or proof of income to make payments.
These are just some of the many new protections provided by the Credit CARD Act of 2009. While this law will not solve everyone’s financial problems, it is expected to help some avoid the debt trap and the risk of having to file for bankruptcy.
Contact Us
If you or someone you love is struggling to pay off debt and is considering bankruptcy, contact the experienced Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A. today at 561-353-2800 for sound legal advice and assistance.
