Credit CARD Act of 2009
In May of 2009, Credit Card Accountability Responsibility and Disclosure Act of 2009 or Credit CARD Act of 2009, was passed by Congress. This law aims to reform credit card legislation and “establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes.” The law was supported by both parties in the Senate and in the House of Representatives. Some provisions do not begin until February 2010.
According to a summary of the bill by the Congressional Research Service, the bill:
- Protects cardholders against arbitrary interest rate increases.
- End penalties on cardholders who pay on time
- Protects cardholders by fixing due dates for payments
- Prevents credit card companies from using misleading or deceptive terms
- Requires credit card companies to offer cardholders a fixed credit limit
- Ensures credit card companies fairly credit and allocate payments
- Protects consumers from excessive fees for going over credit limits
- Protects vulnerable cardholders from subprime cards, which have fixed fees that exceed 25 percent of the credit limit
- Forces congress to provide more oversight into the credit card industry by collecting data on industry profits and card fees and rates
It is important for all consumers to become familiar with the new law and understand how it affects their own credit cards and spending habits.
Even though the federal government has taken steps to help protect consumers against credit card debt, these steps have come too late for many people. If you are struggling with excessive debt, the Milwaukee debt negotiation attorneys of the DeLadurantey Law Office, LLC can help. Contact us today at 414-377-0518.