Credit Card Reform

Credit Card Reform

New credit card reform legislation took effect February 22, 2010. This is the largest credit card reform available to consumers since the inception of credit cards in the 1950's. If you want to clean up credit and start toward credit report repair, now is the time. This credit card law is for consumer protection and changes credit card laws for the better. You will still have bad credit cards, but you now have an opportunity to raise your credit scores. Act now and learn more by getting credit card tips. These new credit card regulations will affect every consumer.

You may think you're getting a break, but credit card companies haven't been successful for this long without learning to squeeze the last dollar from their customers.The new credit card legislation is a good beginning.

As consumers still try to clean up credit, lenders know the short supply of money makes dependence on credit cards all the more attractive. Still, the government is trying to reign them in with the following new reform laws.

Overdraft Opt Out

In the past, banks automatically paid overdrafts and charged whatever fees the market would bear. $33 to sometimes $38 dollars per transaction per day was not uncommon. My personal experience with this was when I transferred money into the wrong account and my overdrafts went on for five days, all the time being paid by my bank. The final overdraft fee was in excess of $500, a fee the bank was unwilling to reimburse. Of course they knew the money was secure and might have even put a hold on it until the account was brought current. With the new law, consumers can choose to waive this coverage.

Interest Rate Hikes Curtailed

Where else in the free world can a company charge you as much as they like when it comes to interest rates? In the past, if credit card payments were late-by one day-you could be assured of an interest rate hike. Of course you had no idea what the spike would be until you received your next statement. Does a rate of 29% sound like a familiar figure?

With the new credit card reforms consumers will have a 60 day window before a late payment triggers a higher interest rate hike. That figure still isn't defined, but if a consumer pays on time for the following six months, the original interest rate will be reinstated.

Credit Cards and Kids

Do you remember opening your mail and seeing all sorts of offers addressed to your kids? Six and seven year old children were being sent offers to sign up for cards at no introductory interest. I've heard of starting them out young, but this was ridiculous and if you thought the lenders really cared, you have something else on your mind.

New credit card legislation prohibits the credit card companies from offering credit to those who are not yet 21 years of age unless they can verify income or have a co-signer for the credit. I predict the loophole will be the income verification aspect of this law because, after all, how much money do you really need to qualify for a card? Still, getting a charge card is normally detrimental if someone wants to increase credit scores.

Plain Language and Terms Posted Online

If you'd like this message in English press 1. Come on, we have to enact new legislation to force these credit card issuers to make their terms available in plain language? Yes, this are your tax dollars at work against a bunch of blood sucking money grabbers. Again, where else in the free world do creditors have such a stronghold on consumers? First by setting interest rates any place they want and then disguising their terms in legal gibberish. Rest easy because Government is to the rescue with their no nonsense approach to enable consumers to finally figure out how badly they are being gouged.