Two years ago, the Credit Card Accountability Responsibility and Disclosure Act (CARD) went into effect. This new law is intended to help protect consumers from the common credit card industry’s practice including abuse penalties and fees, sudden increases in interest rates of balance transfer offers and other unjustifiable changes.
A key provision of the Act on Credit Card is introduced to regulate late fees that your card provider may charge you.
Many consumers noticed that providers seemed to change the due date of payment on their account each month. Many issuers have participated in this practice, considering that it could cause a consumer to do their missed payment on the new date and then a late fee may be charged. This was especially difficult for consumers using credit cards for no credit rating. In fact, students and people without credit history have enough difficulties to be approved for credit cards for no credit.
With the new Credit Card Law, providers must send your statements at least 21 days before the due date. If your issuer charges late fees for late payment, the billing statement must include the due date of payment, the amount of the penalty for delay and the date the late fee will be charged. In addition, if a late payment will result in your interest rate being increased, this with what the interest rate penalty would be should be described in the statement.
Information concerning both late fees and penalty interest rate shall be placed in an area on the statement that the cardholder can easily find and read and even people looking for credit cards for no credit will find all needed information easily.
Also any changes in interest rates can be performed only when the promotional period of balance transfer offers expires. Thus you have more time to pay your debts at zero or low interest rate.
If you have a grace period to pay with your credit card balance transfer offers, where you can pay the balance in full and avoid a financial burden, your return must be mailed or delivered to you at least 21 days before the financial burden would be added to your balance.
The new Credit Card law requires that installments submitted by mail and received by 5:00 p.m. on the due date are now to be credited as on time. This regulation was in response to some card companies that had a 11:00 am due time, leading your payment being marked as “late” if the mail did not arrive until 15:00.