CREDIT CARDS » Credit Card Rates

According to an announcement made by the Federal Reserve on Monday, Nov. 16, 2009, a proposal has been issue to add new provisions to the Credit CARD (Card Accountability Responsibility and Disclosure) Act of 2009. If the proposal is accepted, there will be a number of new restrictions placed on gift card fees.

The New Proposal

According to the proposal, which was directed by Congress to be issued by the Federal Reserve, some of the restrictions would apply to gift certificates, store gift cards, and general-use prepaid cards. A few include:

• Prohibiting issuers from charging dormancy fees on cards unless they've been inactive for at least a year (after the year has passed, the issuers are limited to one fee per month).
• Preventing issuers from charging fees for monthly maintenance, balance inquiry transactions, reloading, and at the point of sale.
• Stopping cards from expiring sooner than five years after the funds are loaded and issued or sold.

Public Opinion Accepted

The Fed will accept public comments 30 days from the announcement. After that time, the Fed will be able to revise the proposed rules. It must submit finalized regulations by Feb. 22 - they will be effective by Aug. 22.

According to Sen. Charles Schumer (D-NY) who authorized the gift card reforms, it's high time to make some changes. His sentiment is mirrored by the high number of consumers who don't want to purchase gift cards to send as gifts because of the fees and expiration dates.

Are you put off by the excessive fees and expiration dates found with gift cards?

Many credit card companies will try to get you to buy their life and disability insurance.

Having credit card life and disability insurance will result in your credit card payments being made by an insurance company to your credit card, should you be injured and unable to work, or should you die suddenly leaving your families with debts to pay. Read on for more information about credit card life and disability basics.

When you get credit card life and disability basics, you are paying a certain portion of your monthly credit card payment as an insurance premium. This premium goes toward a policy offered by an insurance company that contracts with your credit card company. In the event that you become disabled and unable to work, for instance, your credit card life and disability insurance will kick in, and the insurance company will pay your minimum monthly payment to the credit card company.

The cost of credit card life and disability insurance is usually not very expensive, and as a way to entice you into getting this insurance many credit card companies will offer a free introductory period of a few months or so. That free introductory time frame can vary, of course.

Many financial experts query the relevance and need of credit card life and disability insurance. It is essentially all about the credit card company making sure it gets paid, and the only thing paid is your monthly minimum -- while that's being paid your balance is still racking up interest amounts that are not covered by the insurance.

To learn more about credit card life and disability insurance basics, and whether you should get it or not, be sure to consult with a financial advisor. He or she will walk you through the pros and cons of credit card life and disability insurance, and why you might want to get it or not.

When you get a credit card you may be asked as to whether or not you want to purchase life and disability insurance along with it. Credit card life and disability insurance will ensure that your credit card bills are paid in the event that you die or are disabled. That may sound reassuring and...

The House of Representatives passed a bill to move up the effective date for the new credit card law to Dec. 1, 2009. The original effective date was August 2010, which then moved to February, before this new bill was passed because lawmakers sensed that credit card companies were conducting...

Actions taken by credit card companies have shocked consumers and lawmakers alike for years. They have a history of raising interest rates, adding high fees and penalties, and even participating in financial profiling .

However, some consumers with great payment histories have found that after...

Sen. Charles Schumer (D-NY) knows he can't trust those pesky credit card companies, which is why he's pushing to move the new credit card law's effective date up from Feb. 2010. He hopes to get the date moved to Dec. 1, 2009, stopping companies from any attempts to shuck the system before...

According to new data from the Federal Reserve, consumers are dumping their credit cards and slowing down on other types of borrowing at a faster-than-expected pace. In August alone, consumers cut $11.8 billion in borrowing, which represents a 5.8 percent annual rate of decline.

But why are...

Transferring your credit card balance from one card to another in order to take advantage of the new card's low introductory interest rate is a popular thing to do. In normal economic times - and these are not normal economic times, not by a long shot - many credit cards companies want to take...

Just when you thought credit card companies couldn't be any more irksome (to be diplomatic about the whole thing) along comes "universal default." Universal default has been around for a long time, truth be told, but the concept will still be news to most people, and will get your goat no matter...

Universal default is a credit card term referring to your late or missed payment on any bill besides your credit card.

Credit card companies check your credit card report all the time, and if you are late on any payment they find out about it and will consequently jack your credit card interest...