Credit Card Reform Act of 2009

Orlando Credit Card Reform Attorney | Orlando Credit Card Reform Act of 2009 Law Firm | What does the Credit CARD Act of 2009 mean for you?

Orlando Credit CARD Act of 2009 Overview:

• What is CARD?
• Features and Provisions

Orlando Credit CARD Act of 2009 Details:

What is CARD?
The Credit Card Accountability Responsibility and Disclosure Act of 2009 or Credit CARD Act of 2009 is a Federal statute passed by the United States Congress and signed by President Barack Obama on May 22, 2009. It is comprehensive credit card reform legislation that aims "...to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes." For consumers, the most significant provision of the law limits when credit card issuers can increase interest rates on existing card balances.

Features and Provisions
There are some important features of this act that every consumer should know, they go as follows…
Credit card companies are not permitted to raise the interest rate in the first service year. In addition to that, the company can hike the cost of credit, only if the payment of the bill is over 60 days late. Upon the addition of interest rate, the account is to be reviewed, and in cases where the payment for last 6 months has been on time, the original lower rate of interest is to be levied. In accordance with the new legislation, the credit card company must intimate a notice of 45 days, before the interest rate is increased.

Some essential changes regarding billing cycle have also been implemented. The first real change is the ban on double billing procedures. The interest levied upon a single bill plus, differential interest rates and APR's must be disclosed properly in the monthly bill. The statement and the said bill is to be mailed 21 days before the payment is due. In addition to that, charges for payments over Internet or cell phones are to be abolished. Thus, you will have to tally these changes with your own credit card service and check how it will be affected by the Credit Card Reform Act. Debt Settlement would also become an easier option, owing to the transparency of billing. There are however certain, credit card reform act of 2009, limits which are being experienced by credit card companies. Two drawbacks affecting the entire industry include the elimination of grace periods and revision in annual fees.

Contact us at our Orlando office to make an appointment for a free consultation. If you'd like further information about the Orlando CARD Act call 407-647-8833.

 

BAKER LAW, PL serves the Central Florida and seven-county Orlando area, including the cities of Sanford, Lakeland, Lady Lake, Kissimmee, Maitland, Lake Mary, Oviedo, Winter Garden, Winter Park, Windermere, Lake Nona, Apopka, Mount Dora, Winter Springs, Longwood, Orlando, North Orlando, South Orlando, East Orlando, West Orlando, Melbourne, Titusville, Cape Canaveral, Daytona Beach and New Smyrna Beach, and the counties of Orange, Seminole, Lake, Polk, Brevard, Volusia and Osceola.