Post Content

 

Starting tomorrow, you’ll have 21 days to pay your credit card bill, and at least 45 days advance notice if your credit card company is changed your interest rate, the required minimum payment, or increasing fees.

The changes are the first in a series of reforms signed into law by President Obama earlier this year. Other changes will go into effect in February.

These first changes are important ones for consumers. In recent months, in the run-up to the new rules, credit card companies have been making changes to accounts. Many cardholders, for example, have seen immediate increases in their minimum payments. The new rules give cardholders the option of rejecting the changes, and paying off the remaining balance and not using the card any longer.

There are, however, some things consumers should be aware of. New fees are only required to be disclosed before they are imposed. If a low-rate, or zero-percent rate is about to expire, no notice is required if the new rate was originally disclosed. No notice is required if a credit limit is lowered.

These changes are good first steps toward addressing some of the practices of the credit card industry that consumers have complained about, and help many cardholders who were hit hard before these rules were put in place.

Written By:

Recent Posts

Understanding Your Financial Institution’s Data Breaches posted on Feb 21

  The Commonwealth’s Data Breach Notification Law, Mass. General Law, Chapter 93H, requires businesses and other entities that own or license personal information of Massachusetts residents to notify the Office of Consumer Affairs and Business Regulation and the Office of the Attorney General when they   …Continue Reading Understanding Your Financial Institution’s Data Breaches

Service Contracts vs. Extended Warranties posted on Feb 15

Service Contracts vs. Extended Warranties

  When buying a car from a Massachusetts dealer, consumers might hear about automotive service contracts and extended warranties.  Both offer protections against certain problems that may arise, but there are differences between them. An extended warranty is considered part of the purchase price of   …Continue Reading Service Contracts vs. Extended Warranties

Check Your Check posted on Feb 13

Check Your Check

    The progression of modern technology has made it increasingly simple for con artists to manipulate both consumers and financial institutions. The use of counterfeit checks is on the rise, and even bankers themselves can have a difficult time detecting check fraud. Sometimes weeks   …Continue Reading Check Your Check