New Credit Card Rules Take Effect Today
New rules that may help stop the cycle of credit card debt take effect today.
The laws are part of the credit industry regulation that was passed by Congress last May. While most of the laws don’t take effect until February of 2010, consumers may see a few differences in their credit card bills starting now.
Via USA Today, the new changes include:
- Credit card companies must now give you 45 days notice before changing interest rates or fees. Previously, rates and fees could change overnight for any reason.
- A credit card payment may not be counted as late unless the bill was sent at least 21 days before the due date. Previously, if customers received bills so late that they couldn’t get payment in on time they could face high fees or increased interest rates.
Jill Schlesinger of CBS Moneywatch says it’s much needed change but still “not likely to help Americans kick their credit card habit just yet.”
She may be right. If you’re suffering from intense credit card debt, these changes may not offer much relief. If your bills are still under control, this may help you avoid falling into a common credit trap: The unforeseen rate raise.
Before today, people may could open their monthly bills to find dramatic rate increases with no notice and, often, no reason. Many times these rates were triggered by late payments, which may have been unavoidable.
Now, you’ll have more time to act, but it may not help you avoid the high rates in the first place.
Learn how Chapter 7 bankruptcy may eliminate your credit card debt.