CREDITCARD ACT OF 2009 how does it affect you?

[PD code 805D]

what do you think about it?

I honestly think that this was a very good decision. Maybe the only thing NOBAMA has made yet.... he must have a republican advisor. lol


NEW Laws/Rules

Consumer Protection

• Retroactive interest rate increase are banned except when a cardholder is more than 60 days late paying a credit card bill.
• Credit card issuer must review the cardholder’s account six months after increasing the interest rate, and return the APR to the previous lower level if the cardholder has been on-time with payment.
• Interest rate cannot be increased within the first 12 months, and promotional rates must have a minimum of 6 months in duration.
• Advance notice of 45 days prior to significant changes in credit card terms: this includes the benefits and reward structure of a credit card.
• The practice of universal default and double-cycle billing are no longer allowed.
• Over credit limit fees are now prohibited unless consumers specifically agree to allow transaction to go through instead of being denied.
• Bills must be sent out no later than 21 days before the due date.
• Payments cardholder makes must be credited as on-time if the payment is received by 5 P.M. on the due date.

Enhanced Consumer Disclosures

• Clear disclosure on how long it would take to pay off a credit card balance if cardholder makes only the minimum payment each month.
• Clear disclosure on the total cost in interest and principal payments if a cardholder makes only the minimum payment each month.
• Late payment deadline and postmark date are required to be clearly shown and disclosed to cardholders.

Protection of Young Consumers

• Credit cards cannot be issued to people under the age of 21 unless they have an adult co-signer or show proof that they have the means to repay the debt (proof of reasonable income).
• College students will be required to receive permission from parents or guardians in order to increase credit limit on joint accounts they hold with those adults.
• People under the age of 21 will now be protected from pre-screened credit card offers unless they specifically opt-in for offers.

Gift Cards

• Gift cards are now required to remain active for at least five years from the day of their activation.
• Dormancy or inactivity fees on gift cards can no longer be imposed unless there have been no activity in a 12-month period.
• Dormancy or inactivity fees must be clearly disclosed to gift card buyers.
• If the gift card expires after 5 years, the terms of expiration needs to be clearly disclosed to gift card buyers.

Effective Date

• The majority of the new rules will be taken into effect 9 months after the signing of the bill, which puts the effective date on Feburary 2010.
• The rule on 45 days advance notice of major changes in account terms will take effect 90 days after the bill’s enactment, beginning September 2009.

[.blank cd]

Protection of Young Consumers

Credit cards cannot be issued to people under the age of 21 unless they have an adult co-signer or show proof that they have the means to repay the debt (proof of reasonable income).
College students will be required to receive permission from parents or guardians in order to increase credit limit on joint accounts they hold with those adults.
People under the age of 21 will now be protected from pre-screened credit card offers unless they specifically opt-in for offers.

Too damn late. What about the people whos credit got messed up because they were handed a credit card when they were 17 and didnt know what to do with it?

[BanginJimmy]

Too damn late. What about the people whos credit got messed up because they were handed a credit card when they were 17 and didnt know what to do with it?

How about blaming the parents for not educating their children?

[bu villain]

don't be rediculous. everyone, even 17 year olds, know that credit card = free money.

[tony]

Ahh yes, if it was a good idea it must have come from a Republican. The Credit Card Act is half assed and credit card companies will weasel their way around the regulations. Think about it, those who brought this legislation forward receive $40 million in campaign donations from the banking industry, who do you think they considered when drawing up this legislation?

[BanginJimmy]

Ahh yes, if it was a good idea it must have come from a Republican. The Credit Card Act is half assed and credit card companies will weasel their way around the regulations. Think about it, those who brought this legislation forward receive $40 million in campaign donations from the banking industry, who do you think they considered when drawing up this legislation?

They are already finding all of the holes in the bill and taking advantage of them.

[PD code 805D]

the below middle class consumer will always suffer from debt . (most people in below middle class have outstanding debt of more than $20,000.... this forces them to work their whole life to pay off something that they just keep building more of.) / in the end they have *no real property andbank foreclose and resale... doubling their money flow. ( just my opinion.

[ahabion]

the below middle class consumer will always suffer from debt . (most people in below middle class have outstanding debt of more than $20,000.... this forces them to work their whole life to pay off something that they just keep building more of.) / in the end they have *no real property andbank foreclose and resale... doubling their money flow. ( just my opinion.

Dave Ramsey to the rescue.

[SL33P3R]

Someone explain the underage thing with me. Im underage, and I have 2 credit cards. Do I get a get out of jail free card?! haha

[91LudeSiT]

They are already finding all of the holes in the bill and taking advantage of them.

Yea no shit, I just got a letter from fry's stating my shit was changing. They increased the APR, increased the late fees, and want to charge me a damn dollar for a paper bill. This is bullshit because I've never used the fucking card lol.

[MachNU]

One reason why I am down to paying off my last 2 CC's then afterwards, not buying anything unless its with cash.

[TSiFTW]

I use no CC of any kind. I learned my lesson got into huge debt and went bankrupt. Since then I have never even applied to get another and will never. I know some people like them but I do not. Just my personal preference, I do just fine without one.

[TIGERJC]

I like the new changes but it should have taken affect immediately and give the cc companies time to screw ppl before it goes in to effect. This is why I have cancelled two cards and only have my amex

[bu villain]

I use no CC of any kind. I learned my lesson got into huge debt and went bankrupt. Since then I have never even applied to get another and will never. I know some people like them but I do not. Just my personal preference, I do just fine without one.

I'm glad that you learned from your mistake. Unfortunately with the way the system works, you'll be subjected to higher interest rates whenever you take out a loan. Additionally, I use my credit card constantly which builds up my rewards so I get free plane tickets. If you don't have a credit card, you are missing out on these kinds of rebates that are basically free if you always pay your bill at the end of the month. I'm not saying this to say your choice is wrong, just that credit has become a big part of our financial system and if you learn to use it responsibly, it is very beneficial.

[TSiFTW]

I'm glad that you learned from your mistake. Unfortunately with the way the system works, you'll be subjected to higher interest rates whenever you take out a loan. Additionally, I use my credit card constantly which builds up my rewards so I get free plane tickets. If you don't have a credit card, you are missing out on these kinds of rebates that are basically free if you always pay your bill at the end of the month. I'm not saying this to say your choice is wrong, just that credit has become a big part of our financial system and if you learn to use it responsibly, it is very beneficial.

My credit is just fine. There is a lot more to credit then credit cards. Most people do not pay their bills every month and the credit card companies rely on that. Therefore all those rewards are just gimmicks to get the average person to use their card. If it works for you that is fine. Just not for me.

[BanginJimmy]

Having CCs is just fine as long as you use them as charge cards, not credit cards.

When I got laid off I got myself into a bunch of trouble with credit cards and its taking me forever to dig myself out of it. Slowly but surely I am digging myself out though.

[5speed]

Having CCs is just fine as long as you use them as charge cards, not credit cards.

When I got laid off I got myself into a bunch of trouble with credit cards and its taking me forever to dig myself out of it. Slowly but surely I am digging myself out though.

Same here, its a bitch but you gotta eat. I am down to 28X bucks in debt now.

[MachNU]

Yep the whole lossing a job thing hurts. Luckly I made some decision that resulted in my losing fun things in life to go from a 25k debt down to now 9k. Slowly but surely, I am getting to break even. Hope to be debt free by june/july!

[BanginJimmy]

Yep the whole lossing a job thing hurts. Luckly I made some decision that resulted in my losing fun things in life to go from a 25k debt down to now 9k. Slowly but surely, I am getting to break even. Hope to be debt free by june/july!

I'm doing the same things. No going out to eat. Making big meals so I have leftovers for lunch, nothing really extra at all. As much as it pains me, I am probably going to sell my truck also.

While covering all the bills because my wife lost her job 2 weeks after I got mine, I was still able to pay down nearly 5k over the last 7 months.

[Firefightin_tC]

Thank God, I paid my Credit Card off and now debt-free, kid!

[bu villain]

My credit is just fine. There is a lot more to credit then credit cards. Most people do not pay their bills every month and the credit card companies rely on that. Therefore all those rewards are just gimmicks to get the average person to use their card. If it works for you that is fine. Just not for me.

I agree with everything you are saying but I just think its unfortunate that not having a credit card is a disadvantage in the current system. For example, many stores charge higher prices because they know roughly 3% of their profit is gone due to credit cards. So basically if you only pay cash, you are subsidizing all those credit card users rewards in many instances. That's why I recommend everyone to use credit cards if they can do so responsibly. I know not everyone can though and its okay as well.

[ahabion]

I'm glad that you learned from your mistake. Unfortunately with the way the system works, you'll be subjected to higher interest rates whenever you take out a loan. Additionally, I use my credit card constantly which builds up my rewards so I get free plane tickets. If you don't have a credit card, you are missing out on these kinds of rebates that are basically free if you always pay your bill at the end of the month. I'm not saying this to say your choice is wrong, just that credit has become a big part of our financial system and if you learn to use it responsibly, it is very beneficial.

Going to play devil's advocate on this post... sorry bu!

Credit has be marketed to us with such ferocity and guise that the banks and creditors literally have people banging down their doors, begging "Please sell me your product." (honestly, how many businesses out there literally have millions of people begging for your products as if it were life or death) It just does not make sense to spend more money to bow at the feet of the the great FICO only to have to continue to "borrow" money to pay it back for more than you borrowed (interest)... only to have a score that allows you to borrow more money and pay more interest...

What if instead of spending say... $5000 on your credit card to get your "free" air miles, you just paid $500 for a plane ticket... you would have already made an instant saving of potentially $4500 (or atleast never spent).

I've subscribed to a debt-free living. Wife and I are working our way out of debt and will never ever take out another loan again (with exception perhaps a mortgage... but even then, we'll pay it off in 6 years). Credit cards and debt is stupid... and I can admit to stupid.

[bu villain]

Going to play devil's advocate on this post... sorry bu!

Credit has be marketed to us with such ferocity and guise that the banks and creditors literally have people banging down their doors, begging "Please sell me your product." (honestly, how many businesses out there literally have millions of people begging for your products as if it were life or death) It just does not make sense to spend more money to bow at the feet of the the great FICO only to have to continue to "borrow" money to pay it back for more than you borrowed (interest)... only to have a score that allows you to borrow more money and pay more interest...

What if instead of spending say... $5000 on your credit card to get your "free" air miles, you just paid $500 for a plane ticket... you would have already made an instant saving of potentially $4500 (or atleast never spent).

I've subscribed to a debt-free living. Wife and I are working our way out of debt and will never ever take out another loan again (with exception perhaps a mortgage... but even then, we'll pay it off in 6 years). Credit cards and debt is stupid... and I can admit to stupid.

I think you misunderstood me. Everyone has to spend money (food, groceries, insurance, etc.) and the fact is that credit cards do exist and they have benefits when used properly, therefor people may as well take advantage of them as long as they can do so responsibly. By responsible I mean not spending more than you have in your bank account and always paying them off on time. Basically think of it as a debit card that just has a 25 day delay before it shows up to your bank account. Of course some people can't help but overusing them so I completely agree not everyone should have one. I am only an advocate of credit cards for those who understand how they work and have the discipline to use them appropriately.

Congratulations on being debt free by the way. I am also debt free as of last month when I paid my final car payment. Of course I'll be buying a house soon so that will be a short lived achievment.

[bigdare23]

I'm loving the new rules! Too bad the banks had time to fuck over their customers before it went to effect. Last November my APR went up for every credit card I owned. The card I owned the longest jumped from 9% ARP to 29.99% unless I decided to cancel my card *shakes head*. Shit pissed me off because I have never made a late payment. Plus, canceling the card is bullshit because that would hurt my credit score.

Since I'm in school and fully funded, I decided to take out a small student load for the amount of my bills. That dropped my interest rates down from damn near 30% to I believe 6%. So when I make monthly payments, majority of my payment is now going to principle rather than interest like it was before. Plus, the loan is actually helping my credit score. So if you're in debit and in school, I would suggest looking into paying your debit that way.

It's funny when the government tries to "punish" the banks, we, the people, feels the repercussions. Shit is fucking ridiculous!!! They been screwing over people for decades. When the government is finally stepping up to help the people, they crank the "screw overs" up 100 notches before they start to get regulated. I'm starting to realize that banks are basically untouchable. Everything that they view as punishment will just be force down onto the people that are in debit to them. *shakes head*

[preferredduck]

these companies/banks help write the bills so they will still get their $$$ no matter what.