Personal Finance Tip of the Day
Didn't the U.S. Congress just pass a new law on credit cards?
- Yes, it aims to curb abuses in the credit industry.
- It requires credit card companies to give notice in advance of interest increases.
- It distributes payments to higher-interest balances first.
- It allows for consumers to learn when they approach their credit limits.
Yes, Congress passed, and President Barack Obama signed into law, the Credit Card Act of 2009, which is designed to curb abuses in the credit industry and protect consumers. The new law requires credit card companies to give consumers 45 days advance notice about interest rate increases. It also requires consumers to apply payments to the highest-interest rate balances first before applying the payment to a lower-interest rate, balance-interest-free loan.
The new law also requires consumers to "opt-in" in order to be able to make charges that exceed your credit card limit. This change will enable consumers to learn when they are approaching their credit limits.
From The Handy Law Answer Book by David L. Hudson, Jr., JD., (c) 2010 Visible Ink Press(r) Combines practical legal tips with an exhaustive overview of U. S. law to answer to more than 800 legal questions.| < Previous Fact | Next Fact > |
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