Credit Card Act of 2009
Wednesday, August 19, 2009
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The first in a series of new measures designed to protect credit card users will take effect tomorrow. The changes are a result of the Credit Card Act of 2009. As Jeff Yastine explains in tonight's program, the some of the law's unintended consequences are making consumers unhappy.
Discuss this story on XChange - The NBR Blog.
Main Points of Credit Card Act of 2009
| Credit Card Act of 2009 |
FIRST PHASE - AUGUST 2009 |
- Consumers receive statements 21 days before payment due. |
- Card issuers must give consumers at least 45 days notice of rate hikes. |
SECOND PHASE - FEBRUARY 2010 |
- Card issuers can only raise rates on existing balances if (1) the consumer is 60 days or more past due, (2) a promotional rate expired, (3) the consumer does not complete a workout plan, or (4) a variable rate increased because of movement in an index. |
- If a rate hike is the result of a late payment, the lower rate must be reinstated after the consumer makes six months of on-time payments. |
Related NBR Stories & Links
- 08-14-09: Credit Card vs. Debit Card (VIDEO)
- 07-30-09: The new Consumer Norm (VIDEO)
- 04-23-09: President Obama Calls Credit Card Companies on the Carpet
- 07-09-08: "Money File" - Exposing Hidden Credit Card Fees
- 02-13-08: "XChange, The NBR Blog" - Credit Cards and Stimulus
External Links/Articles*
- Bankrate.com
Bankrate.com is an aggregator of financial rate information. The company's Credit Cards Columnist, Leslie McFadden, is interviewed in Jeff Yastine's report. This links to a Bankrate.com article authored by McFadden and titled, "8 Major Benefits of New Credit Card Law." - "Credit Card Accountability Responsibility and Disclosure Act of 2009" (PDF Document)
This complete copy of the Credit Card Act of 2009 is hosted on the U.S. Government Printing Office website. - Credit Card Reform.org
Credit Card Reform.org is a website maintained by the Consumers Union, the nonprofit publisher of Consumer Reports. The site currently features information about the Credit Card Act of 2009. - Federal Reserve
The Federal Reserve is the central bank of the U.S. This links to the "Consumer Credit" section of the Fed's website. It includes a variety of resources and tools for consumers, including a "Consumer Handbook for Credit Protection Laws." The site also offers news and information about credit card regulation. - PRWeb
This links to a press release Cardratings.com issued via PRWeb. The August 19, 2009 press release is titled, "Cardratings.com Poll Finds Credit Card Act of 2009 Worries Consumers." Cardratings.com is and online source for comparing credit card offers. Its founder, Curtis Arnold, is interviewed in Jeff Yastine's report.
*Clicking these external links will take you off the NBR web site on PBS.org. NBR has no affiliation with these sites.
