The Credit Card Accountability, Responsibility, and Disclosure Act (CARD) has been floating around Congress for several years. In 2005 it was called S499 but died, in 2007 it was called HR1461, in 2008 it was called S3252 and it was finally approved on May 22, 2009 by President Obama as S414.
The Act provides the most significant changes to the credit card industry since 1969. President Obama stated the act will "restrict practices he says contributed to consumers' financial problems during the recession. We're not going to be giving people a free pass and we expect consumers to live within their means and pay what they owe. But we also expect financial institutions to act with the same sense of responsibility that the American people aspire to in their own lives."
The Act is a huge win for consumers and college students who have been victims of the unfair practices of credit card companies. A few highlights of the Act are:
1. Banning unfair rate increases
2. Prevents fee traps
3. Requires easy explanation of disclosures
4. Statements will tell consumers how long it will take to pay off a balance by making only the
minimum monthly payment
5. Eliminate credit card rate hikes
6. Provide credit card agreements online
7. Consumers will be mailed statements 21 days before the due date
8. Payment dates will no longer be shifted
9. Consumer approval required for over-the-limit transactions
10. Restrictions on interest rates and credit cards offered to college students under age 21 without
verifying employment or getting parent's permission
Unfortunately the Act does not put a cap on credit card interest rates so interest rates can still increase but consumers will have to be notified before the rate increase becomes effective.
This Act will provide a more level playing field allowing consumers to shop around for the best deal and hopefully offer a more competitive market instead of the market being dominated by a few top banks and credit card companies.
Make sure you read everything that comes in the envelope with your statement each month and if you don't understand something contact the credit card company right away. If you feel you are being a victim of unfair practices notify the company and file a complaint with the Federal Trade Commission or your state Consumer Affairs Office.
The credit card companies are waiting for you to mess up or throw away something that you should have read, don't let them win.
Showing posts with label credit card bill. Show all posts
Showing posts with label credit card bill. Show all posts
Tuesday, June 16, 2009
Sunday, June 07, 2009
7 Reasons to Pay On Time
The recession has caused many Americans to become unemployed; the current unemployment rate is 9.4%. Being unemployed has a domino effect, many Americans lost their homes, their health insurance coverage, cars, stability, spouses, their pride and more.
Loss of a job also causes Americans to make late payments, overdraw on their accounts and search for unconventional ways to make ends meet. For those Americans who had not made late payments, you may be rewarded.
I have one credit card with my credit union and have been a member for over 10 years. I recently lost my credit card and while reporting my lost credit card I was asked if I wanted a credit limit increase. This was done without a credit check my limit was increased $1,000. I have not made a late payment in over 10 years that may be a rare thing in this economy. I was happy to be rewarded for being a good customer and my credit limit is still under $10,000. Here are 7 benefits of paying your credit card bills on time.
1. Fees. If you pay your credit card balances in full each month you don't have to pay finance charges or late fees which saves you money.
2. Credit score. If you pay your credit card bills on time this helps to increase your credit score over time.
3. Bank relationship. Paying your credit card bills on time helps to maintain a good relationship with your credit card company and they will be more willing to work with you if you have a financial crisis in the future.
4. Discounts. Paying your credit card bills on time will afford you rewards such as: credit limit increases, a decrease in interest rates, discounts, incentives, promotions, and other offers.
5. Options. Paying your credit card bill on time allows you to choose from various payment options: online, automatic deduction, by mail, or over the phone. When making late payments you have to send your payment overnight or pay over the phone which will cost you more money.
6. Future. Paying your credit card bills on time makes you look more favorable if you wish to buy a home in the future.
7. Reduces stress. Paying your credit card bills on time prevents creditors calling you asking for a payment and reduces the stress or worry about how you will make your payments.
Loss of a job also causes Americans to make late payments, overdraw on their accounts and search for unconventional ways to make ends meet. For those Americans who had not made late payments, you may be rewarded.
I have one credit card with my credit union and have been a member for over 10 years. I recently lost my credit card and while reporting my lost credit card I was asked if I wanted a credit limit increase. This was done without a credit check my limit was increased $1,000. I have not made a late payment in over 10 years that may be a rare thing in this economy. I was happy to be rewarded for being a good customer and my credit limit is still under $10,000. Here are 7 benefits of paying your credit card bills on time.
1. Fees. If you pay your credit card balances in full each month you don't have to pay finance charges or late fees which saves you money.
2. Credit score. If you pay your credit card bills on time this helps to increase your credit score over time.
3. Bank relationship. Paying your credit card bills on time helps to maintain a good relationship with your credit card company and they will be more willing to work with you if you have a financial crisis in the future.
4. Discounts. Paying your credit card bills on time will afford you rewards such as: credit limit increases, a decrease in interest rates, discounts, incentives, promotions, and other offers.
5. Options. Paying your credit card bill on time allows you to choose from various payment options: online, automatic deduction, by mail, or over the phone. When making late payments you have to send your payment overnight or pay over the phone which will cost you more money.
6. Future. Paying your credit card bills on time makes you look more favorable if you wish to buy a home in the future.
7. Reduces stress. Paying your credit card bills on time prevents creditors calling you asking for a payment and reduces the stress or worry about how you will make your payments.
Wednesday, May 16, 2007
Bill in Congress May Reduce Credit Card Costs
There are several credit card fees that are associated with a credit card such as:
1. Over the limit fees
2. Cash advance fees
3. Late payment fees
4. Finance charges
5. Annual fees
6. Rate increase after a promotion
These fees can make paying off a credit card difficult. It can seem like you will never be able to pay off the debt. Purchasing an item with a credit card results in 112% the original cost of the item.
Congress has heard our cries. A new bill has been introduced that will outlaw some credit card billing practices.
If you have questions about any information in this article send me an email at hfreeman@hefreemanenterprises.com.
See the article below or clink on title to access the article link for future reference.
Bill Would Ban Some Credit Card Actions
By MARCY GORDON
The Associated Press
Tuesday, May 15, 2007; 6:29 PM
WASHINGTON -- Legislation proposed Tuesday would outlaw some credit-card billing and interest-rate practices that critics say confuse consumers and can push them deeper into debt.
The bill authored by Sens. Carl Levin, D-Mich., chairman of the Homeland Security and Governmental Affairs Committee's investigative panel, and Claire McCaskill, D-Mo., would ban interest from being charged on any portion of a credit card debt that the consumer paid on time during a grace period.
It also would limit so-called penalty increases in interest rates, which are imposed when a payment is made after the due date, to a maximum 7 percentage points above the current rate.
The legislation was heralded by consumer groups. Many lawmakers, however, have expressed reluctance to impose mandates on how banks do business.
Sen. Christopher Dodd, D-Conn., who heads the Senate Banking Committee, which has jurisdiction on the issue, said he will examine the proposal "in a careful and thoughtful fashion."
The banking industry opposes such legislation. "We worry about micro-managing the pricing of financial products in a way that may ultimately hurt consumers," said Ken Clayton, managing director of credit card policy at the American Bankers Association.
Heightened scrutiny of credit card practices has come from the new Democratic-controlled Congress, which has put a number of consumer issues on its legislative agenda. With Americans weighed down by some $850 billion in consumer debt, the practices of the robustly profitable credit card industry are a compelling subject for scrutiny.
Amid the congressional focus, several major banks recently began to eliminate or temper some of the practices.
An investigation by Levin's subcommittee found abusive and confusing practices, and repeated penalties imposed by credit card issuers that are said to amplify the financial woes of many Americans while bringing in tens of millions of dollars for the companies.
The bill also would:
_Require increased interest rates to apply only to future debt on a credit card account, not to debt incurred prior to the increase.
_Prohibit charging of interest on credit card account fees, such as late payment fees and fees for going over the credit limit.
_Prohibit charging of repeated over-limit fees for a single instance of exceeding a credit limit, and allow the fees to be charged only when the consumer's action, rather than a penalty, causes the limit to be exceeded.
_Ban so-called "pay-to-pay" fees, often charged when consumers make payments on their accounts by telephone. Such fees would be prohibited for any form of payment, including mail or electronic transfer.
_Require payments to be applied first to the portion of the account balance with the highest interest rate.
_Ban the practice known as "universal default," in which credit card issuers raise interest rates for customers because they're late on payments to other creditors separate from the account in question.
1. Over the limit fees
2. Cash advance fees
3. Late payment fees
4. Finance charges
5. Annual fees
6. Rate increase after a promotion
These fees can make paying off a credit card difficult. It can seem like you will never be able to pay off the debt. Purchasing an item with a credit card results in 112% the original cost of the item.
Congress has heard our cries. A new bill has been introduced that will outlaw some credit card billing practices.
If you have questions about any information in this article send me an email at hfreeman@hefreemanenterprises.com.
See the article below or clink on title to access the article link for future reference.
Bill Would Ban Some Credit Card Actions
By MARCY GORDON
The Associated Press
Tuesday, May 15, 2007; 6:29 PM
WASHINGTON -- Legislation proposed Tuesday would outlaw some credit-card billing and interest-rate practices that critics say confuse consumers and can push them deeper into debt.
The bill authored by Sens. Carl Levin, D-Mich., chairman of the Homeland Security and Governmental Affairs Committee's investigative panel, and Claire McCaskill, D-Mo., would ban interest from being charged on any portion of a credit card debt that the consumer paid on time during a grace period.
It also would limit so-called penalty increases in interest rates, which are imposed when a payment is made after the due date, to a maximum 7 percentage points above the current rate.
The legislation was heralded by consumer groups. Many lawmakers, however, have expressed reluctance to impose mandates on how banks do business.
Sen. Christopher Dodd, D-Conn., who heads the Senate Banking Committee, which has jurisdiction on the issue, said he will examine the proposal "in a careful and thoughtful fashion."
The banking industry opposes such legislation. "We worry about micro-managing the pricing of financial products in a way that may ultimately hurt consumers," said Ken Clayton, managing director of credit card policy at the American Bankers Association.
Heightened scrutiny of credit card practices has come from the new Democratic-controlled Congress, which has put a number of consumer issues on its legislative agenda. With Americans weighed down by some $850 billion in consumer debt, the practices of the robustly profitable credit card industry are a compelling subject for scrutiny.
Amid the congressional focus, several major banks recently began to eliminate or temper some of the practices.
An investigation by Levin's subcommittee found abusive and confusing practices, and repeated penalties imposed by credit card issuers that are said to amplify the financial woes of many Americans while bringing in tens of millions of dollars for the companies.
The bill also would:
_Require increased interest rates to apply only to future debt on a credit card account, not to debt incurred prior to the increase.
_Prohibit charging of interest on credit card account fees, such as late payment fees and fees for going over the credit limit.
_Prohibit charging of repeated over-limit fees for a single instance of exceeding a credit limit, and allow the fees to be charged only when the consumer's action, rather than a penalty, causes the limit to be exceeded.
_Ban so-called "pay-to-pay" fees, often charged when consumers make payments on their accounts by telephone. Such fees would be prohibited for any form of payment, including mail or electronic transfer.
_Require payments to be applied first to the portion of the account balance with the highest interest rate.
_Ban the practice known as "universal default," in which credit card issuers raise interest rates for customers because they're late on payments to other creditors separate from the account in question.
Subscribe to:
Posts (Atom)