In the modern age, we can’t really imagine ourselves without a Credit or a Debit Card! But now, A long list of new rules will change how your credit card account is handled. The New Credit Card Rules apply from today [22nd February 2010] You may just go through a short summary from Federal Reserve.
Let me tell you that this version of Law updates are supposed to be most consumer-protective in the history of credit cards Laws. Even if they are pretty tough to understand, the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) has some notable changes, which are listed as below:
* Credit card companies must give 45 days notice before changing terms, including raising interest rates.
* Issuers must apply payments to balances with the highest interest rate first.
* Double-cycle billing is no longer allowed.
* Payment due dates must be the same every month.
* Issuers cannot raise the interest rate on existing balances.
* Customers must opt in to over-limit fees.
* Credit card companies cannot charge extra fees for paying your credit card bill.
* Minors will not be able to own their own credit cards.
Even after this Law Update, I don’t think it will have a fall in the number of Credit Card users. The only thing that may happen is the rise in the Debit Card users. I feel that this Credit CARD Act may somehow help in proper management but not without having a lot of restrictions on the Customers.