Changes in Credit Card Laws

Millions of people rely in credit card for their day to day living, yet these wonderful inventions have lead many users to financial ruin. Through misuse laziness, fraud, and lack of management many people have trouble with credit card debt and usage. This is part of what has brought about recent credit card changes and laws and to help customers with merchant account comparison. Here are some of the highlights of these new federal credit card laws:

Limited rate increases: Interest rate hikes that arr applied to any existing balances an be applied only under predetermined and limited situation like when a promotional or trial period ends or if late payments are made an the rates go up as a result. The rate of interest on new transactions can be raised only once the first year had passed. Significant changes in terms but be given 45 days notice before any alterations are made- especially changes in interest rates so that the customer has a chance to do some merchant account comparison  and find another credit company if they want to.

The right to opt out: Consumers have always been able to opt out of certain aspects of their policy. Now that the laws have been updated, it is now easier to opt out and it is now required that credit card companies alert you of upcoming changes so you have the chance to decline features, pay off your balance, and close the account.

Clear due dates: Credit companies can not set early morning or arbitrary dates for payments. Cutoff times that are prior to 5 p.m. are now not allowed and are not permissible by law. Payments due on a date that falls on a weekend, holiday, or a day when the company is not open are not subject to late fees. The law also states that due dates and times must remain the same month to month and if any change tot he date is planed the card owner must be notified in advance of the change.

Highest interest balances: When consumers have a card that has several purchases on it, payments over the minimum amount due will go to paying the balance purchases that have a higher interest rate before being applied to any other balance. What this means is if a card balance is for two purchases where one has an interest rate of %12 and the other has a rate of %17, extra payment  amounts must be applied to the %17 balance before any other.

Minimum payments: Credit card issuers are now required to tell card owners how much they will be paying in interest and how long it will take them to pay off the balance if they make only the minimum balance each month. 

Late fee restrictions: There is now a maximum of $25 for occasional late payments. If someone constantly makes late payments, the fees can be higher if this happens more than one or two within a six month time period.  Merchant account comparison is also worked into this area since many people look for new credit card companies because of late fee penalties.

Through misuse laziness, fraud, and lack of management many people have gotten into trouble with credit card debt and usage. Fortunately, some of the new credit card laws and regulations are making it easier to get a handle on your credit card usage and debt.

Interested in learning how a credit card can help your business? Contact us today at Vision Payments. With years of experience in the eCommerce field, we can help you find the perfect solution for your business!