Credit Card Reform Act of 2009
Andover, Massachusetts May 6th 2010—Preferred Financial Services has read and reviewed the Credit Card Reform Act of 2009 and sees many changes that Americans need to be aware of so they can act accordingly. Everything from new restrictions on minors to the new presentation of monthly statements has been covered by this bill, and if Americans don’t understand the changes, they will continue to make the same mistakes this bill was created to avoid.
The first visual change consumers will notice is how the monthly statements are presented. Gone are the basic balance due figures and in its place there are now sections that show how long it will take to pay off the balance if only the monthly minimum is paid as well as how much they would have to pay each month to eliminate the debt in 3 years. Both figures should help consumers understand just how harmful minimum payments are as well as pointing out just how expensive items are if not paid off in a short time period.
The law has also outlawed arbitrary rate increases which means consumers now get at least 45 days notice before their interest rates go up for no reason. The practice of any-time, any-reason interest changes that used to occur on a daily basis is now a thing of the past. This means that the popular double cycle billing practice has now been outlawed. This practice allowed companies to charge consumers interest on items that were paid in full the previous billing period. It basically punished Americans who paid their bills in full on time one month but not in full on time the next.
The act has also changed how vulnerable people of society can be targeted by credit card companies. Anyone under the age of 21 now must prove their income or have a co-signer in order to get a credit card. It has also outlawed prize giveaways at college campuses which used to be a popular way of enrolling new students into credit card programs. Both provisions should prevent future students from running up massive credit card debts while still in school, a common occurrence under the previous rules.
For more information on the act and all the changes, please visit www.whitehouse.gov and search for Credit Card Reform Act
Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past 7 years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.
Contact:
Stephan Tavernini
stavernini@pfs1.net
www.pfsdebtrelief.com
Thanks for the great read had a blast reading it !
Great article. Very interesting information. I use to read about 15 blogs a day, but because my time is nowlimited, I only can read 1 or 2 now. And this is one of them.