What new rules take effect from CARD act?
The changes due to the Credit Card Accountability, Responsibility and Disclosure Act (CARD) are aimed at protecting cardholders from "any time any reason" punitive rate increases on existing balances and changing the formula for calculating monthly interest payments.
Here are a few of CARD's new regulations and how they protect consumers:
Overpayments Go Toward Highest Interest Balances: If the card holder has varied interest rates for different services or accounts, any overpayments must be applied to the account that is incurring the highest interest rate.
Cardholder Opt-Out: If there are significant changes made to the terms of the account, card holders can choose to reject those changes and will have five years to pay off the balance under the original terms.
More Notice for New Interest Rate Changes: Card issuers must give card holders 45-days advance notice in the event of an interest rate increase. Additionally, promotional rates must apply for at least six months and, unless disclosed up front, card holders cannot have their rate increased in the first year.
Older Age Restrictions Added: Card issuers are no longer allowed to issue a credit card to anyone under 21 unless they can prove they have the means to repay debt or if an adult over 21 co-signs on the account. Credit card companies also face new restrictions on how they can promote cards to college students and can no longer offer free gifts as enticements on campuses.
New Rules for Monthly Statements: In response to complaints that bill due dates were being moved up-and leading to increased late fees-monthly statements must now be mailed or delivered 21 days prior to the due date. Additionally, card issuers can no longer set a payment deadline before 5 p.m. and cannot charge card holders if they pay online, over the phone or by mail-unless the payment is made over the phone either on the due date or the previous day.
Smarthome & Theater Systems works primarily in the state of Connecticut. We cover the entire state from the greenwich, darien, westport, fairfield area up north to farmington, west hartford, glastonbury area and up the shoreline to branford, guilford, madison and clinton. We have traveled as far as the litchfield hills, marlborough and near the casino at montville.
Check out what we can do for you. Contact us: 1-203-659-4734. We Offer Consumer Financing Thru GE Money
Here are a few of CARD's new regulations and how they protect consumers:
Overpayments Go Toward Highest Interest Balances: If the card holder has varied interest rates for different services or accounts, any overpayments must be applied to the account that is incurring the highest interest rate.
Cardholder Opt-Out: If there are significant changes made to the terms of the account, card holders can choose to reject those changes and will have five years to pay off the balance under the original terms.
More Notice for New Interest Rate Changes: Card issuers must give card holders 45-days advance notice in the event of an interest rate increase. Additionally, promotional rates must apply for at least six months and, unless disclosed up front, card holders cannot have their rate increased in the first year.
Older Age Restrictions Added: Card issuers are no longer allowed to issue a credit card to anyone under 21 unless they can prove they have the means to repay debt or if an adult over 21 co-signs on the account. Credit card companies also face new restrictions on how they can promote cards to college students and can no longer offer free gifts as enticements on campuses.
New Rules for Monthly Statements: In response to complaints that bill due dates were being moved up-and leading to increased late fees-monthly statements must now be mailed or delivered 21 days prior to the due date. Additionally, card issuers can no longer set a payment deadline before 5 p.m. and cannot charge card holders if they pay online, over the phone or by mail-unless the payment is made over the phone either on the due date or the previous day.
Smarthome & Theater Systems works primarily in the state of Connecticut. We cover the entire state from the greenwich, darien, westport, fairfield area up north to farmington, west hartford, glastonbury area and up the shoreline to branford, guilford, madison and clinton. We have traveled as far as the litchfield hills, marlborough and near the casino at montville.
Check out what we can do for you. Contact us: 1-203-659-4734. We Offer Consumer Financing Thru GE Money