The long awaited Credit CARD Act goes into effect today. As summarized by the Consumer Law & Policy Blog, the Act has these main benefits:
- The interest rate on one credit card account can’t be raise because you were late or missed a payment on another card account.
- Most promotional rates have to last at least 6 months.
- Your billing statement has to tell you about the penalties and other consequences for late payments.
- There are much stronger restrictions about how credit cards can be marketed to people under 21.
- Generally, credit card companies can’t charge fees for going over the card’s credit limit.
New Credit Card Law Effective Tomorrow (Monday, February 22) | CL&P Blog | February 21, 2010
Michelle Singletary’s column in the Washington Post this weekend gives a very good overview of some of the new credit rules for 2010. The big change, of course, is the Credit CARD Act that will limit exotic fees and high interest charges, and will force lenders to more meaningfully disclose their products’ terms.
New credit rules could make for a happier 2010 for consumers| Michelle Singletary | Washington Post | December 31, 2009