In May 2009, Congress passed the Credit Card Accountability Responsibility and Disclosure Act of 2009 or Credit Card Act of 2009. The new law provides for the creation of various safeguards for consumers from suffering to avoid over-indebtedness. This scheme should credit cards easier to understand for all Americans and thus help the Americans from the collection of indebtedness.
Under the act, credit card companies are forced to make changes to the way they do on advertising, marketing and Bill their cards. The law requires the companies to be clear and direct costs and debt. In addition, consumers will have more time to their monthly bills to pay more notice of changes in terms of their card has, and face lower costs for penalties, late fees and interest.
Although some parts of the law came into force in June 2009, others take effect until February 2010. In June 2009, card users should be provided:
The ability of a credit card account at the same time as the payment under the equilibrium terminate Moreover, due lower interest rates than new, higher prices for old debt. Previously, consumers were not entitled to withdraw interest rate and fee increases, and this possibility was offered at the discretion of the company credit card.
A period of at least 21 days to pay the debt months without being subject to late fees.
Warning of changes to regulations issued at least 45 days before the changes take effect. So far, companies have up to 15 days in advance before giving the changes.
The new law has a number of provisions that in each case for more protection for consumers, provide power in February 2010. These protections include:
Protection against arbitrary increases in interest rates
No penalties for consumers to pay their debts on time
Due dates for payments and early warning, to change the due date
Definitions of terms commonly used to remove the clause or misleading
Power for the owner to prevent their own credit limit overspending
Requirements for credit card companies, fairly payments on payments, the debt with the highest rate first.
Protection against overcharging, limiting these costs to three.
Protection for vulnerable customers disadvantages of sub-prime credit cards that have high costs, by requiring that fees be paid in advance.
Strengthening of control by the Congress in the credit card industry through the collection of data collected has increased and the annual presentation of information in Congress.
