Last year I wrote about the Credit Card Bill of Rights, and what it really meant for you. This law went into effect last Monday, so here is a reminder about the key points of the new law and how it affects you.
Overdraft Fees. Overdraft fees can only be charged if you have positively “opted in” and accepted the option to have overdraft protection for a fee. If your credit card company has not already contacted you, they may contact you very soon. Declining the option will prevent you from incurring any overdraft fees in the future, but it will also cause your credit card to be denied if you reach your credit limit.
Order of Balances Paid. Previously credit card companies applied any payments in the order that created the most interest for them by applying any payments to the balances with the lowest interest rates first. For example, applying your payments to special balance transfer offers at low interest rates before purchase balances with higher interest rates. Now credit card companies are required to apply payments to the highest interest rate first.
Enhanced Statement Details. Credit card issuers must now provide additional information in your monthly statements including total interest paid for the current year, potential late fees, and total time to payoff the balance by only paying the minimum payments.
Extended Notice Periods. Now credit card companies must provide 45 days notice for any significant account agreement changes including interest rate changes. You also still have the option of declining any changes and paying off the balance at the current interest rate.
Legal Age for Credit Cards. Individuals under 21 years of age must now have an “adult” co-signer in order to obtain a credit card, unless they can prove they have the financial ability to repay their own account balances.
Pingback from New Credit Card Changes Take Effect | Live Money Smart .com | Calling Cards Live
March 1, 4:11 am
[...] Read the original post:Â New Credit Card Changes Take Effect | Live Money Smart .com [...]