New legislation adjustments for credit cards help card holders
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In the summer of 2010 there are going to be some changes in the rules dealing with how interest rates are handled with credit cards. These laws are supposed to help the American people; however upon reviewing them closely it appears more like a public relations stunt than something to truly assist the American consumer.
These are some of the most profound legislation changes that we have witnessed in years and they come as a result of over sixty thousand complaints to the Federal Reserve over the last couple of years. The complaints are over when card holders suddenly find themselves getting their interest rates greatly raised on their credit cards.
One of the most beneficial changes is that debtors will no longer get their interest rates bumped up on existing balances when they go a day or two late. Instead the interest rate hike would be put on future purchases not the existing balance like the credit card companies do today. But if the late payment goes past 30 days then the interest rate increase will be applicable to the existing balance as well. Credit card companies say in their defense that the reason for bumping up the rate is because these consumers are a higher risk of non payment.
One more change made is that the creditors must give people a forty five day notice to the fact that the interest rate is going to be increased; they can no longer just bump it up overnight without warning the consumer.
Personally I feel this is too little too late! How come we have to wait until next year for these changes to take effect? In addition if you are still over thirty days late than you would still see the high interest applied to your previous balance. And many consumers fall behind way further than one month, especially with today’ economy and job market.
Plus these new laws will only take effect on the cards issued from July 2010 and forward. So somebody who has a card under a different sign up agreement will still fall victim to the creditor’s scummy tactics. Consumers stuck with high credit card debts should seriously figure out how to get out of debt as soon as they can.
One of the best ways consumers have been accomplishing this is through debt settlement companies; a method in which the consumer will save a lot of money and become debt free within a couple of years. Getting you the correct credit card debt relief should be a top concern.
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