New Credit Card Legislation
August 5, 2010 by
Administrator
Filed under
National News
With all the financial problems facing Americans, credit card companies are now seeing new laws put into effect. The truth is you should learn more about the new credit card legislation and how it will affect you in order to choose the best options.
No more over limit fees – Today, if you do not have the funds to purchase an item you cannot purchase at all, as the purchase will be denied. Overdraft coverage will now be an option the cardholder will have to ask for if they desire this service. This has been a loss of revenue for credit card companies and they of course want cardholders to opt for this service at a cost. In most cases, the fees are around $30 if you use the card with insufficient funds.
With this new law in affect, credit card companies are now reducing the limits of available credit to card holders in some cases as much as 50%. If you have an outstanding balance, this may lower your credit score if you happen to have a higher debt to credit ratio. The real truth is you should only be using around 30% of your available credit to be safe.
The new law makes all credit card payments due each month on the same day. This can aid in paying payments on time and steer clear of late payments.
As you read this, credit card companies are compiling and sending their cardholders their new terms. It would be wise to read their new terms, which might include higher interest rates, lower reward points, and annual fees. You will have the chance to opt out of the terms but your account will be closed. Even if you do opt out, under the new laws you will have up to five years to pay off the debt that is under the old terms.
7 Comments to New Credit Card Legislation
Comments
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Home for Sale in Granbury, TX says:
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It was kind of sneaky how some of my banks / cards handled this. One particular bank was pushing the over the limit option in case of “emergencies” pretty hard. Of course… it was the same one that would whack you over the head with outrageous fees for going 10 cents over the limit.
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My credit card company (a big one) tried to trick me into accepting the overdraft protection that they are now pushing. They sent a letter stating that it was a big deal that the gov’t is making me opt in for these items. Well, I quickly declined and think most should also. If the money is not in my account then don’t approve it.
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It’s good to see the Government cracking down on this. THe banks have gotten away with it for too long!
Ryan@Indianapolis Real Estate´s last blog ..Real Estate Buddy System -
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That’s true Joy. I made the mistake of accepting overdraft protection. I wish I wouldn’t have because now I really have to pay attention.
Joy from 
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