Everyone has heard of the new credit card laws and the good news is that new credit card laws are going into effect on July 1, 2010. The bad news is that not everyone is going to qualify for the better practices that the new credit card laws are meant to achieve.
How the new 2010 credit card laws will be affecting consumers:
After listening to the complaints of millions of Americans concerning unfair credit card practices, the federal government has now gotten into the act and has passed legislation which will result in new credit card laws being implemented on July 1, 2010. These new credit card laws seek to address complaints concerning unfair practices such as:
- limits on the number of interest rate increases
- double-cycle billing
- clear grace periods for making payments, etc.
The new credit card law should make it easier and less frustrating to be a credit card customer, and to put an end to less-than-forthright practices by credit card companies that ultimately end up confusing the consumers - a confusion that causes consumers to make mistakes which causes credit card companies to penalize customers with high fees. As a matter of fact, penalties and fees are an important part of a credit card company's profit margin.
Those who will not benefit from the new credit card laws include people who have business credit cards. Since businesses are not technically considered consumers, they won't enjoy this new way of doing business. Also unaffected by the new credit card laws are members of the military who are returning home to America from overseas. This is because their credit card rates are mandated to be capped at 6% while they are abroad, but when they come home they will see their rates go back up to normal, which can be quite high. Such an abrupt and large rate hike is forbidden under the new credit card laws. If you're a member of the armed forces who is about to return home, take heart: the new credit card laws may also cover you, they just haven't been totally hashed out yet.
To learn more about the new credit card laws and how to use your credit cards wisely consult with a financial advisor.
