Have You Heard Of The Obama Credit Card Relief?
Posted on
June 23, 2009
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12:10 am
What is this bill all about and what is its status?
Posted on
June 23, 2009
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12:26 am
It's a credit card bill that's due to be passed into law next year, and its aim is to give consumers more time to pay their principal debt, before they are subjected to penalty interest rates
Posted on
June 23, 2009
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12:28 am
Next year...and how did the credit card companies take it?
Posted on
June 23, 2009
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12:36 am
Not too well, i should think, but they said that they are going to cooperate with the Obama administration. During their meeting with the president the issue that was discussed was how to protect the consumers in this time of recession, but at the same time, make it not so hard for creditors to extend them credit. I suppose the rules and terms in getting new credit are going to be tougher. Does anybody have any idea as to what these new rules are going to be?
Posted on
June 23, 2009
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12:39 am
President Obama was quoted saying: "Part of this is the broader economy, but part of it is the practices of credit card companies. Contracts are drafted not to inform, but to confuse. Mysterious fees appear on statements. Payment deadlines shift. Terms change. Interest rates rise. And suddenly, a credit card becomes less of a lifeline and more of an anchor."
Posted on
June 23, 2009
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12:45 am
It was signed last week at the White House and this new law has restrictions on interest rate increases and the restrictions extend to credit offered to college students.
Posted on
June 23, 2009
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1:15 am
That law tackles the following:Interest rates - If the consumer's payment is 60 days late, the credit card company can increase the rate.Penalty fees - Unless the consumer has asked for an over-limit fee, the creditors can't charge the consumer for it. Banks may not charge late fees if they were also late in crediting a payment.College students - Credit card companies may not market to people under the age of 21, without parental permission, or verification of their ability to pay.
Posted on
June 23, 2009
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2:00 am
The law is called Credit Card Accountability, Responsibility and Disclosure Act by the way or the (CARD) Act 2009. Some of its highlights are:-credit card companies must give the consumers 45 days before they can up the interest rates.-the consumer's payment must first be applied to the highest interest rate balance.Many people liked the idea of creditor transparency but hates the idea of the government getting involved in it. One critic of the law said that the people who uses their credit cards responsibly (by not having balances) are going to be negatively affected by this law.
Posted on
June 24, 2009
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12:47 pm
It's great that CARD was signed into law and holds a variety of new provisions, but the majority of will not go into effect until Feb. 22, 2010 (some provisions will take effect as early as August, 2009 and some as late as August 2010) So the credit cards have plenty of time to mess with us and get as much out of us as they can. I saw my interest rate jump 10 points! For what???? Because they considered me a poor credit risk because GOSH... I am maxed out on all cards, because, OMG... the current economic state (high gas prices, high fuel prices, high food prices)... YIKES... let us hope that we can hang on until then.
Posted on
June 24, 2009
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1:13 pm
Another issue that this new legislation tackles is Universal Interest. Now, if one of your credit card companies decides to boost your interest rate because you fell behind on a payment, all of your other creditors reserve the right to do the same (incredible, I know) if that comes to their attention (by looking at a credit report for example). Once this legislation is effective that will no longer be allowed.
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