Your credit card company has probably been sending you a bunch of pamphlets with account changes in tiny print lately.
Why?
The Credit CARD Act, which was approved last year, is not in effect – well, partially. This act was created in response to some credit card companies using sneaky tactics to get more money from consumers in the form of random interest rate hikes, double-cycle billing and others.
Starting February 22, 2010 many credit card companies are going to have to change their practices, which explains all the mail you’ve been getting. We’ve been covering this act for quite a while now, so we’ve got plenty of information for you. We can answer the following questions:
Am I Affected By These Laws?
Not everyone will see changes to their credit card, like people with business credit cards. However, the majority of consumers will see a difference.
What Changes Will I See?
Some changes went into effect in 2009, but most will happen in February, like:
- Less targeting of students and other young adults
- No more online banking fees
- Guarantees on rates
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A few of the changes will occur in August, as well.
Is It Just Credit Cards?
No. You’ll also see changes in gift card practices, so you can feel better about giving those to your friends and family as gifts.
How Does the Credit Card Industry Feel About the Changes?
Of course, this means some lost revenue for credit card companies. As much as you may want to make them out to be the big, bad guy, some companies have started adhering to the rules early in order to implement fair business practices.
That’s not to say that there aren’t some companies who are finding sneaky ways around the rules.
There will be lots of changes coming up, but they will all be better for your wallet. If you continue paying off your debt, keep an eye on your credit score and start saving, these new laws will only make your life easier.
My New Years resolution is to straight up leave the Credit Card world. If I can’t afford it, I’m not getting it. Credit Cards are evil.