The new credit card laws should be coming into effect shortly. What are they and how will they affect the credit cards that are in your wallet? The new credit card rules will be easier for people to understand. Analysts say that the new laws will make credit more difficult to get and more expensive for consumers. Low income households will have a tough time obtaining new credit from credit card issuers. Card holders will have more time to pay the monthly bill, more notice of rate changes including late fees and interest payments.
The New Rules For Credit Cards
- Consumers will have more time to pay the bill. Bills would be due 21 days after they are mailed. Creditors would no longer be able to make early morning or other arbitrary due dates for paymenhts. Due Dates that fall on weekends or when the credit card company is closed would not be subject to late fees.
- Over the limit fees would be a choice. You would have to choose an option that would allow you to go over your spending limit rather than just being able to. Many consumers get in trouble with over the limit fees because they don’t even know that they have gone over the limit.
- Double-cycling would be eliminated.
- The consequence of making minimum payments must be spelled out clearly to the credit customer.
- Changes in interest rates could only occur after a 45 day notice.
Hopefully these changes will give people a chance to get out from under their debt. Maybe consumers will think twice about getting into debt in the first place.
