Understand The CARD Act
The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, was signed on May 22, 2009, marking a turning point for American consumers and ending the days of unfair rate hikes and hidden fees. The list below is a quick overview of what you should expect from your credit card company.
- Transparency
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You should receive facts with options to help you achieve successful repayment, including debt counseling contact information. Also, your statement must be sent 21 days before your due date to allow sufficient time to review.
Tip: Make sure you take a closer look at your statement.
- Rate Increases
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Your rate can't increase without reason, and without full disclosure.
Tip: Pay extra attention to mail or other communication from your card company.
- Payment Allocation
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If you transferred balances at lower rates, your payment must be applied to the higher rate balances first.
Tip: Keep track of your highest rate cards and pay off balances every month if possible.
- Late Fees
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The bill ends late fee traps.
Tip: Be sure you know your due date and pay on time to avoid late fees.
- Overspending
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Financial institutions must obtain your permission to charge an over-limit fee for transactions that would take you over your credit limit.
Tip: Know your credit limit. Maxing out your card isnt a good thing, even if card companies need your permission.