Last week brought us changes to the way Credit Card issuing companies can operate in an effort to further protect consumers from abusive or deceptive practices.
The CARD (Credit Card Accountability, Responsibility, and Disclosure Act) now prohibits credit card issuing companies from increasing interest rates for one full year from the date the card was first issued.
Lenders must also disclose, well in advance, any fee increases and explain why. Fees for inactivity and late and over-limit fees are facing more restrictions.
With the positive changes, it is certain that lenders will be looking to make up for lost revenue.
Watch your statements closely because annual credit card fees are expected to increase and already have begun rising.
Also, interest rates have been inching upward. Keep track of your interest rates and remember to shop around for better rates, especially since new cards can’t up the interest rates for one year.
Another aspect of the CARD Act is to help you understand your card and how it works in an easier fashion. You can find out how long it will take to pay your card off by making only the minimum payments and it will be explained in clear detail if you are being charged penalty fees.
As always, if you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.