Fresh legislation adjustments for credit cards help debtors
In the summer of 2010 there are going to be some changes in the rules dealing with how interest rates are handled with credit cards. These laws are supposed to help the American consumers; however after reviewing them in depth it seems more like a public relations stunt than something to truly assist the American consumer.
These are some of the most drastic legislation changes that we have witnessed in years and they come as a result of over 60,000 complaints to the Federal Reserve over the last couple of years. The complaints are over when consumers out of nowhere find themselves getting their interest rates greatly increased on their credit cards.
One of the most beneficial changes is that people will no longer get their interest rates racked up on existing balances when they go a day or two past due. Instead the interest rate hike would be put on future purchases not the existing balance like the credit card companies do today. However if the late payment goes past 30 days then the interest rate increase will be applicable to the existing balance as well. Credit card companies say in their defense that their reasoning for hiking up the rate is because these debtors are a higher risk of non payment.
Another change made is that the creditors must give consumers a forty five day notice to the fact that the interest rate is going to be jacked up; they can no longer just bump it up overnight without warning the consumer.
Honestly I think this is too little too late! How come we have to wait until next year for these laws to take effect? In addition if you still go over thirty days late than you would still see the high interest applied to your previous balance. And many people fall behind way more than one month, especially with today’ economy and job market.
Plus these new laws will only take place on the cards issued from July 2010 and forward. So somebody who has a card under a different enrollment agreement will still fall prey to the creditor’s scummy tactics. People stuck with high credit card debts should really figure out how to get out of debt as soon as they can.
One of the more lucrative methods in which people have been accomplishing this is through debt settlement companies; a method in which the debtor will save a lot of cash and become debt free within a couple of years. Getting you the correct credit card debt relief should be a number one concern.
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