subject: Obama's Credit Card Debt Relief – How Obama Is Helping You With Credit Card Debt [print this page] Obama's Credit Card Debt Relief How Obama Is Helping You With Credit Card Debt
In response to the fact that many Americans are facing huge credit card debt, as much as $945, President Obama signed a bill that will severely hinder the capacity of card issuers to raise interest rates and feeswithout warning or notice.
"With this bill we are putting in place some common sense reforms designed to protect consumers," President Obama said after signing the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 (H.R. 627).
What this bill does is protect card holders from the unannounced and sudden increase of interest rates to their clients. Card companies cannot make an increase without issuing a notice to their clients 45 days prior to their planned increase.
Will this bill greatly help Americans who are struggling with debt? The answer is a resounding yes. With card companies no longer able to increase interest rates at a moment's notice, a card holder will see huge reduction in their bills in the future.
Card issuers will also be restricted from implementing rate increases on existing balances due to "any time, any reason" or "universal default" and are fully restricted from imposing retroactive rate hikes due to late and delinquent payment. As long as cardholders pay their debt within 60 days from the date of their billing, their interest rates cannot be increased.
In addition, card issuers are now mandated to disclose all terms of their credit contracts online and in language that consumers can see and understand so they can steer clear of unnecessary costs and administer their finances. According to President Obama, "every card company will have to post its agreements online, and we'll monitor those agreements to see if new protections are needed."
This is indeed good news for people who are now indebted to credit card companies. With such move from the President, people with cards can now manage they accounts, settle or reduce credit card debts, and live a great life ahead.
