Basic Information Guide About The Card Act

Whenever one decides to get a credit card, one must know all about his or her billing

, fees, and interest rate rights. This is important because it will ensure protection to the credit card owner. This is the reason why the Card Accountability, Responsibility and Disclosure (CARD) Act was passed last 2009 because the federal government also sees the need that credit card users must be protected. Now, this law will ensure credit card users will be knowledgeable about true costs and that credit card issuers are accountable for this. Now, it may be important to assess the relationship of CARD Act in preventing Arizona bankruptcy.

The mechanism of this law must be recognized by everyone because this will be essential in ensuring that Arizona bankruptcy prevention can be made possible through the CARD Act. Here are some basic details about the CARD Act:

Billing and Payments

Before the payment is due, the credit card company is required to deliver the bill at least 21 days before the due date. Post mail and electronic mail can be a medium.

A due date is fixed for every month.

The payment cut-off time must happen no earlier than 5 pm.

Late fees are not possible if ever payment due date falls on a weekend or a holiday. Late fees will only be charged if paying for it the next business day will not happen.

Once the customer pays for the minimum amount due, the credit card issuer is required to give the extra amount to the highest interest balances first.

This act also abolishes the double-cycle billing. Now during two different billing periods, there is not interest charge for the same balance.

Fees and Interests

Twelve months must pass first before the credit card company changes the interest rate of the credit card holder. Individuals whose credit card is under a six-month introductory rate cannot avail this benefit. This is also not available for payments made 60 days late.

Once an increase happens after 12 months, the total balance is not affected. This will only affected new purchases.

If ever there are annual fees involved, it will not be more than 25%of the initial credit limit.

A requirement of at least informing 45 days in advance must be followed by the credit card company whenever they start to increase their interest rates.

In order that all factors of a credit card holders right will be covered, the CARD Act has many different provisions. These days, it is quite common for people to experience bankruptcy due to credit card debts. Actually, many people are now suffering from Arizona bankruptcy. This is the reason why it is important that one knows what his or her legal rights are.

by: John Raymond Collado

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