MAGNOLIA

CLIPPING SERVICE
(601) 856·0911 I (205) 7~8·8610

MESSENGER

OKOLONA, MS

Circulation = 1165

WEEKLY

03/03/2010
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BBB EXl?l~ins Impact of New

Credit Ciiel Regulations
February 22 was when new to payoff the balance under the
consumer protections kick in that original terms,
are laid out in the Credit' Card Older age restrictions added.
Accountability Responsibility Card issuers are no longer al­
and Disclosure Act of 2009 lowed to issue a credit card to
(CARD). The Bctter Business anyone under 21 unless they can
Bureau (BBB) Serving Missis­ prove they have the means to
sippi cxplaim what these new na­ 'repay debt or if an adult over 21
tionwide consumer protections co-si gns on the account. Credit
mean to cardholders. card companies also filce new re­
It is reported in a strictions on how they can pro­
CreditCards.com survey that mote cards to' college students
nearly 75 percent of cardholders and can no longer offer free gifts
admit to not reading the terms as enticements.
and conditions of theit credit New rules for monthly state­
cards, The BBB recommends ments. In response to complaints
that all card holders familiarize that bill due dates were being
themselves with the fine print moved up-and leading to in­
and review the new provisions creased late fees-monthly state­
set out by the new CARD Act. ments must now be mailed or
"Credit card debt can mount delivered 21 days prior to the due
when times arc tight, and con­ date. Additionally, card issuers
sumers need to take the time to can no longer set a payment
understand the fine points oftheir deadline before 5 p.m. and can­
credit card agreements and thc not charge card holders if they
different fees and penalties that pay online, over the phone or by
can chisel away at the family fi­ mail-unless the payment is
nances," said Bill Moak, Presi­ made over the phone either on
dent/CEO of the Mississippi the due date or the previous day.
BBB. "While CARD provides Overpayments go toward high­
more consumer protections, card est interest balances, If the card
holders ~1i11 need to keep an eye holder has varied interest rates
on changes to their accounts and .furdifferent services or accounts,
rcspond quickly if they aren't sat­ any overpayments must be ap­
isfied." plied to those that are incurring
Following are just a few of thc the highest interest rate,
ncw credit eard regulations and Over the limit opt-in. Card
consumer protections as a result holders must opt-in to be able to
of the Credit CARD Act: exceed their credit limit-and
More notice for interest rate subsequently be charged an ovcr­
changes. Card issuers must give limit fee by the issuer, If a card
an advance notice of 45 days holder chooses not to opt-in, then
when making interest rate he or she will not be able to ex­
changes. Additionally, promo­ ceed their credit limit and incur
tional rates must last for at least any resulting fees,
six months and, unless disclosed Increased disclosure on mini­
up- front, card holders cannot mum payments. Card issuers
have their rate increased in the must disclose how long it will
first year, take the card holder to payoff
Cardholder opt-out If there are their bill ifthey pay only the min­
significant changes made to the imum monthly payment as well
terms ofthe account, card holders as how much the they would
can choose to rej ect those need to pay every month to pay
changes and will have five years off the balance in 36 months.
Say goodbye to double-billing
cycles. When calculating finance
charges, card issuers can no
longer employ twQ:£Yc1e or dou­
6Ie 6Iihng) . a il1ethod that causes
cardholders to pay interest on
previously paid balances.
To learn more about the new
consumer protections, Credit­
cards.com has a comprehensive
breakdown of the CARD Act of
2009.