Consumer Law

New Credit Card Rights For Consumers

By Randall Ryder

Starting today, credit card holders have more rights:

• More time to pay. Credit card companies have to mail bills 21 days in advance of the billing date.
• More time to reject changes. Card holders now have up to 45 days to reject rate increases.
• More time to pay off existing balances. Card holders now have the option of paying off existing balances at current rates over a time period of at least 5 years.
• More definite deadlines on payment. Credit card companies can no longer have weekend deadlines for payments, cannot change the due date every month, or use deadlines that fall in the middle of the day.
• Excess payments go to the highest interest balance first. Credit card companies are now required to apply excess payments to the highest interest balance first.
• Customer notification and permission on going over your limit. Credit card companies must notify and receive customer permission to process any transaction that places the account over its limit.

FACT SHEET: REFORMS TO PROTECT AMERICAN CREDIT CARD HOLDERS | White House Press Office

(photo: Andres Rueda)

Full post as published by Caveat Emptor on August 20, 2009 (boomark / email).