|
|
|
|
CONSUMER
ADVISORY March 2010 By Attorney General Tom Miller
New
Protections for Credit Card
Consumers
The new U.S. “Credit CARD Act” gives consumers new rights and protections
with their credit cards. It took full effect
on February 22, 2010. Here are some of your
new rights, and changes you can expect from credit card companies:
·
Limits on interest rate
increases. Under the new Credit CARD Act: Credit card companies must give you 45 days’
notice of any significant changes in your credit card terms.
The interest rate on a new credit card cannot be increased in the first 12
months that you have the card. It is illegal
for the card issuer to increase the interest rate retroactively unless you are 60 days
late on a payment. If your interest rate (APR)
is increased because of a late payment on your card, then, after 6 months of you paying on
time, the APR must return to the prior lower rate. Companies
no longer can raise your interest rate if you are late paying on another company’s
bill or payment. ·
More credit card billing
information. Your monthly credit card bill
will include information about how long it will take to pay off your balance if you only
make the minimum payments. It will also state
the amount you would need to pay each month in order to pay off your balance in three
years. All bills must be sent to you at least 21 days before the due date. The bills also must have a phone number and
Internet address with information on how you can make payments. ·
New protections for
underage consumers. If you are under
age 21, you must prove you are financially independent in order to open a credit card
account, or you will need a co-signer who is over 21 and is willing to be liable for your
debts. No more “freebies”
– companies cannot offer “free” items to students to get them to sign up
for a card on or around campus, or at a college-sponsored event.
Manage your
credit cards carefully to avoid expensive credit card debt.
Pay on time and pay the full balance each month if possible. Most credit card companies will not impose a
finance charge (except on cash advances) if you pay in full before the due-date on your
bill. Avoid “maxing-out” on cards or
paying only the minimum amount due. Go to for more information about
credit card protections. To file a complaint or get more information, contact the Iowa Attorney General’s Consumer Protection Division, Hoover Bldg., Des Moines, IA 50319. Call 515-281- 5926, or call toll-free to 888-777-4590. The web site is (click on "protecting consumers.") Consumer
Protection Division ! Hoover
Bldg. ! Des
Moines, IA 50319 !
515/281-5926 !
888/777-4590
|
|
|
Send mail to QUESTIONS with
questions or comments about this web site.
|
