Let’s try to shed a bit of light on the situation: This is only a quick overview of the bigger issues tackled in the bill, as you can find hundreds of articles covering the topic in great depth almost anywhere.
1) Your card issuers had better hope they raised your interest rates while they had the chance. (I know mine did).
Starting in early 2010, card issuers may no longer raise rates on EXISTING BALANCES unless you are more than 60 days late on your account.Â They may however, raise your interest rate on new purchases with a 45 day notice.Â (This provision must be enacted within 90 days of bill signing).
2) You will have more time to pay your bill.
Your due date will be the same, but statements will have to be issued at least 21 days before the due date.Â In addition, if your payment is received before 5p.m. on the day the bill is due, it will not be considered late.Â Payments made on non-business days (Sat, Sun, and Holidays) are also “safe” from late charges.
3)If you have multiple rates, the largest will be paid first.
This is (in my opinion) the single best aspect of this law.Â It works especially for those of us who are paying off debt.Â If you have differing interest rates on your card, the highest rate will be paid first.Â For example, if you have a balance of $500 on a cash advance at 24.99% interest and a $1500 balance at 13.99%, the cash advance balance will be paid first.Â No matter when the purchase or advance was made, this policy will be effective.
While these are the biggest and best changes to current credit card policies, there are a few other additions to this bill that are noteworthy:
For more in-depth explanations of the new laws, see these articles at: