Credit Card Reform Starts Today

Consumers gain rights with new provisions

Key Components:

  • Prevents credit card issuers from increasing interest rates on cardholders in good standing for reasons unrelated to the cardholder’s behavior with respect to that card
  • Requires payments to be applied first to the credit card balance with the highest rate of interest, and to minimize finance charges
  • Requires credit card statements to be mailed 21 days before the bill is due rather than the current 14
  • Requires cardholders to be given 45 days’ notice of any interest rate increase
  • Prohibits issuers from charging a fee to allow a credit card holder to pay a credit card debt, whether payment is by mail, telephone, electronic transfer, or otherwise

Source: White House and Sen. Chris Dodd

Key Dates:

February 22, 2010:

Most provisions of the credit card bill go into effect. Federal Reserve Board to issue a final rule on the following provisions:

  • Interest rate reduction consideration requirements
  • Preventing deceptive ads for credit reports
  • Gift card protections

August 22, 2010:

The following provisions go into effect:

  • Interest rate reduction consideration requirements
  • Reasonable and proportional penalty fees
  • Gift card protections

May 22, 2011:
The following provisions go into effect:

  • Review and report on consumer credit plans and regulation

Source: Defendyourdollars.org

(Black Enterprise Credit Card Checklist)

Related articles:
Get Ready for the New Credit Card Rules
How New Credit Card Reform Affects You

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