Credit Card Act Of 2010: The Fight Continues

Although it has been since February 2010 since the Credit CARD (Card Accountability

, Responsibility and Disclosure) Act went into effect, there are still cases of credit card abuse that consumers must deal with. The Credit CARD Act was meant to limit instances of abusive practices by credit card companies, but some loopholes exist that allow companies to get away with treating customers horribly. Both banks and some credit card companies have found holes in the new laws and milking its worth.

Let's start with the Good News first. One piece of good news is that credit card companies will no longer be allowed to automatically allow a card to go over-limit. The only way a purchase can put an account over its limit is if the customer has given written consent (by way of signature) permission do so. Even in these situations, customers still face fees when the credit card account goes over-limit. However it should be noted that part of the new credit law, the customer must be properly informed before signing the consent.

Because the Credit Act means that credit card issuers are to limit overdraft fees & fewer late fees but are looking to make up lost revenue by increasing other fees. Customers have an opportunity to opt out if they are not happy with fee increases, but here are the bad news: there are rules for opting out.

With conforming within the new rule, credit card companies must give a 45 day notice to any increases such as interest rate increase one year after a credit card account is opened. Customers can cancel their card to avoid paying that rate, but if the card is used more than two weeks after the notice is sent, the customer will be charged the higher interest rates on those purchases.

Some card companies are also eliminating the grace period (the time after a purchase during which interest is not charged on the item). This means that customers will be charged interest immediately after the purchase is made. Some companies even have gone as far as buying their customer right out like paying the customer $300 to close their accounts.

Here's an appalling bit of information that was recently noted: that a credit card company may reduce a customer's credit limit just because of a change of marital status or living situation. One would only guess that the credit card company deemed that the person's living arrangements has changed and red flagged the situation as be a high risk regardless if that person was doing well with their credit card payments. This is blown way out of proportion, as it seems to be a clear cut vantage of discrimination. If the person, regardless of their financial situation can make the payments and demonstrates a good credit payment standing, then the credit card company conjured up some big Kaunas to do so.

Really folks, this is an utter shame that credit card companies have the guts to do such a thing to people; especially if they show that they are not a credit threat. This also got to show you guys that even though the New Credit Card Act has good intentions, you really have to stay on top of what credit card companies are pulling out of their hats. No matter how you will look at it, the credit card companies (and banks) will always be on top. All they have to do now is legally snake their ways through the loop holes; which they clearly will succeed.

by: Teeny solomon

POST COMMENT

Bad Credit Loans Loan In Canada Clarification Of Bad Credit Payday Loans Part Twelve Bad Credit Loans Loan In Canada Explanation Of Bad Credit Payday Loans Part Twelve The Six Most Important Steps to Maximizing your Credit Score Instant Payday Loans No Credit Check - Your Perfect Answers Emergency Overnight Loans For Bad Credit – Fiscal Help Available Even In Bad Times The Best Way to Eliminate Credit Card Debt - Reduce Your Unsecured Debts Fast Eliminate Credit Card Debt Fast - Be Credit Card Debt Free in Under Three Years No Credit Check Payday Loans- Risks Taken To Serve You Better Will a Short Sale Show up on Your Credit? Pounds till Payday: Financial Help without Credit Check!! Unsecured Loans Bad Credit: Collateral Free Funds For Bad Creditors Bad Credit – Do not Worry, Get Savings Account Payday Loans Payday loans No Credit Check: Beneficial financial assistance to resolve monetary hassles