The New Credit Card Law: Its Advanatges
By: Liz Roberts
Copyright (c) 2010 Liz Roberts
On May 22,2009 the Credit Card Accountability, Responsibility and Disclosure, or Credit CARD Act of 2009 was passed into a law. Some people might ask, is it important for us to learn the changes brought about by the New Credit Card Law? Will these changes help us avoid getting stuck in debts?
Let us discuss the highlights of the new law and learn about its advantages:
No sudden rate increases. In the past years, many cardholders have found themselves stuck in bad debt due to the sudden increase in their interest rates. Missing your deadline with any creditor could mean an increase in your credit card rate even if you are on time paying off your balances. Thankfully, the dreaded "Universal Default Clause" has now been abolished. Issuers cannot change the interest rate within the first year of the card's issuance. Credit card issuers can still raise your current interest rate but only for three reasons:
- if the promotional rate has expired (promotional rates must not be shorter than 6 months)
- if the Variable Index Rate has increased
- if the cardholder has been late for 60 days or more.
Longer advanced notice period. If a credit card issuer plans to increase the present rate, it must send its cardholders an advanced notice at least 45 days prior to the rate changes. Currently, banks are only mandated to give a short 15-day notice. Restrictions on other fees. Issuers must be more careful about charging additional fees. For instance, cardholders cannot be charged with extra costs for making their payments through online or phone banking.
High-rate debts paid first. Payments beyond the minimum due required must be applied to the highest rate debt first. That is contrary to the current rule where payments are applied to the lowest-rate debt first, giving cardholders a longer time paying off their debts.
More time to make payment. The new rule requires all credit card companies to send a billing statement at least 21 days before the due date. This will give cardholders the chance to make their payments before getting penalized by late fees. Longer lifespan for gift cards. Gift cards must be given least a 5-year expiration period. Issuers are not allowed to charge inactivity fees unless the gift card has not been used for more than 12 months.
Double-cycle billing is never allowed. A credit card with a double-cycle billing can be risky since you will still get finance charges based on your previous and current balance. Under the new law, the double-cycle billing is prohibited. Student credit card limits. Students under the age of 21 cannot apply for a credit card unless they have a co-signer or they can show proof of their own income.
Yes, credit card issuers cannot just change their rates and fees at any given time. The New Law has been made to help consumers stay out of bad credit. Nevertheless, it is still important to remember that it can only work out if payments are submitted on time and credit card use is put in control.
About the Author
New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing since 1989. Join our mailing list for Free Tips on Rebuilding and Repairing Credit. Click here for the list of credit cards for bad credit.
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Inviting Chocolate Recipes:
Exquisite Chocolate Fudge, Caramels, and more:
Icing can be formed into shapes such as flowers and leaves using a pastry bag. A pastry bag is an often cone- or triangular-shaped, hand-held bag made from cloth, paper, or plastic that is used to pipe semi-solid foods by pressing them through a narrow opening at one end. Aside from icings and frostings, pastry bags are commonly used to shape meringue and whipped cream, and to fill doughnuts with jelly or vanilla custard. Using icing to decorate cakes is commonly used with wedding cakes, anniversary cakes and birthday cakes.
Chocolate Almond BARS
1/2 a cup of sugar, 3/4 a cup of glucose, 1/2 a cup of water, (1/4 an ounce of paraffine at discretion), 1/2 a cup of blanched almonds, chopped fine, 1/3 the recipe for fondant, 3 or 4 ozs. of Baker's Chocolate, 1 teaspoonful of vanilla.
Melt the sugar in the water and glucose and let boil to about 252° F., or between a soft and a hard ball. Without the paraffine cook a little higher than with it. Add the almonds and the vanilla, mix thoroughly and turn onto a marble or platter over which powdered sugar has been sifted. Turn out the candy in such a way that it will take a rectangular shape on the marble. When cool enough score it in strips about an inch and a quarter wide, and, as it grows cooler, lift the strips, one by one, to a board and cut them in pieces half or three-quarters of an inch wide. When cold, drop them, sugar side down, in chocolate fondant prepared for "dipping." With the fork push them below the fondant, lift out, drain as much as possible, and set onto oil cloth. These improve upon keeping.
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