Highlights of the Credit Card Bill of RIghts
President Barack Obama signed the Credit Card
Accountability Responsibility and Disclosure Act
of 2009 legislation meant to protect consumers
from financial industry practices which critics
contend trap card users under mountains of debt.
Here are highlights of the bill:
* Requires issuers to disclose the period of
time and total interest it will take to pay off
the card balance if only minimum monthly payments
* If the interest rate increases because the
minimum payment is not received within 60 days
after the due date, the rate must go back to the
original lower rate if the consumer makes on time
minimum payments for 6 months.
* No over-the-limit fees may be charged unless
the consumer has asked for the account to be set
up to allow transactions which will exceed the
* Prohibits credit card issuers from setting early
deadlines for payments. Payments must be received
by 5:00pm at a location set by the issuer.
* Due dates will be on the same day each month.
* The rule prohibits card issuers from treating
a payment as late unless the bill is mailed or
delivered at least 21 days before the due date.