New Credit Card Law – Opt Out of High Interest RatesPosted on August 19, 2009
By CreditCards.com
Starting Thursday, when the first phase of the new Credit Card Accountability, Responsibility and Disclosure (CARD) Act goes into effect, credit card users will be armed with a new right to say no to — that is, opt out of — interest-rate increases and other changes in their credit card agreements.
Under the first phase of the new law, consumers must be given:
* At least 45 days’ warning of changes to their credit card accounts. Currently, only 15 days’ notice is required unless customers default on their accounts, in which case interest-rate increases can go into effect immediately.
* At least 21 days to pay their monthly credit card statements without threat of late fees.
* The right to opt out of interest-rate and fee increases and the right to cancel their accounts while paying off the balances under the old, lower interest rates. Currently, issuers offer opt-out options at their discretion, and it is not a consumer right.
Other aspects of the new credit card law — such as restrictions on interest-rate increases, bans on issuing and marketing credit cards to young adults, and regulations on gift cards — take effect in February 2010 and later. In addition, starting July 1, 2010, a host of requirements for disclosing fees, rates and terms on monthly statements, credit card applications and mailers will become law as a result of new rules drafted and approved by the Federal Reserve Board and other banking regulators.
© 2012 Trinity Credit Services. All Rights Reserved.
My husband called about one of his credit card interest rates yesterday (9/17/09). His rate was increased 10% because he was late one day on his payment. When he called to question about the increase they were not willing to decrease the rate and decreased his credit limit to what his balance is. Originally, his limit was $20,500 they decreased his amount to $10,500 which is what he owes. Is this legal?
Will this new ability to “opt out” of increases cause me to cancel my credit cards and therefore, adversley effect my credit rating? I feel like the credit industry has me trapped, no matter
what I do!
First off: Just more information for you about me…….
I NEED THE money to move to Florida as I am vry disabled with many many issues that cause me severe PAIN every minute of Everyday! I am on a waiting list for a great apartment my rent will ONLY BE $240 per mth……..my turn is almost here I cannot seem to save the $ I am paying regular bills the ones that are financially hurting me are all Storage fees as EVERYTHING I OWN INCLUDING CAR are in storage IN FLORIDA!! Those extra fees will be goneas soon as I can get there but I can’t save while paying that extra storage fees! and 2 of my other bills totaling in $251.00 will be gone BY JUNE 2010 at latest!
Second: OF COURSE I NEED A BREAK TO REBUILD MY CREDIT…….EVERYTHING FELL APART THROUGH A VERY NASTY DIVORCE HE BLED ME DRY I DID HAVE A1 Credit until he got his hands on it using my cards through a short peeriod of time then not only physically abused me thru a long period of time …then filed for divorce!!! Left me with ALL THE Bills and I had NO CHOICE but Bankruptcy!!!
Then there is $400 alimony monthly of course….he wouldn’t pay in timely manner and I was forced to take him to court to get my money….so AGAIN MY CREDIT SUFFERED ATTEMPTING TO PAY MY bILLS in timely manner…….ten I was forced to get Credit counselors and I am Paying for the last 3 closed accts timely EVERY MONTH AND THOSE ARE ALMOST PAID OFF!!!
This is a little more to help you understand how I got where I am Credit wise anyway…..My ex used me for my $
my parent died in 1991 in a GM TRUCK FIRE and of course GOT A LOT OF $ MY ex really loved me then when it wasgone he had saved the $ for GOOD ND DIRTY ATTY all i had was my dsability and a dirty atty that I had known as a friend (I THOUGHT) for 15 years but her and her husband and my ex and myself hung out she played both sides…..mostly his!! She was proven extremely UNETHICAL and yes I reported her to the board!
OK enough I JUST NEED A BREAK ……..SERIOUSLY I NEED TO GET OUT OF MI MOSTLY FOR MY HEALTH along with emotional, mental problems still with my ex harassing and mentally abusing me still!!!!!! I CAN PROVE MYSELF AND REBUILD MY CREDIT!!! I AM GOING BACK TO SCHOOL ONCE I GET TO FL>>>>>>AS I FEEL BETTER THERE!!!!!!! I HAVE GOALS AND I INTEnD TO FOLLOW THROUGH THROUGH ALL RECENT TRIALS AND TRIBULATIONS I DID NOT TELL YOU I STILL AMD STICKING TO mY GOALS AND DREAMS OF BEING A USEFUL PERSON IN SOCIETY AND MY OWN MENTAL HEALTH!!!
SINCERELEY CLAUDETTE PARKS