Credit Card Accountability Responsibility and Disclosure Act of 2009 Sec 102
Credit Card companies really don't like this section of the law as it takes away a few of their favorite tricks.
We like the elimination of the double billing cycle. I personally find it annoying that I pay the bill in full, don't make any purchases, and I have a small amount on my balance for the next billing cycle.
They have to notify you if you are going over your limit and ask your permission to do so. People would be over their limit by a dollar and get billed $39 for the privilege and sometimes it would trigger the penalty rates adding more to the debt. and they can only charge that once per month so If you go over and make several purchases you are not getting hit more than once a month once Feb 2010 roles around.
this section of the new law also sets up where the fees that are imposed is regulated so that the amount of the penalty is in line with the severity of the penalty starting action.
(Sec. 102) Prohibits imposition of a finance charge, with certain exceptions, upon a credit card account balance that is based on balances for days in billing cycles preceding the most recent billing cycle (double billing cycle) as a result of the loss of any grace period. Prohibits penalties for on-time payments.
Prohibits the charge of an over-the-limit fee unless the consumer expressly permits the creditor to complete the relevant transaction (opt-in).
Allows imposition of an over-the-limit fee only once during a billing cycle. Prohibits its imposition more than once in two subsequent billing cycles with respect to such excess credit, unless the consumer: (1) has obtained an additional extension of credit in excess of the credit limit during any such subsequent cycle; or (2) reduces the outstanding balance below the credit limit as of the end of such billing cycle.
Prohibits a creditor from imposing a separate fee related to the method of payment (by mail, electronic transfer, telephone authorization, or other means), unless the payment involves an expedited service by the creditor's service representative.
Requires any penalty fee or charge to be reasonable and proportional to the omission or violation involved.
Directs the Federal Reserve Board to establish standards for assessing whether the amount of any penalty fee or charge is reasonable and proportional to the omission or violation to which the fee or charge relates.
We like the elimination of the double billing cycle. I personally find it annoying that I pay the bill in full, don't make any purchases, and I have a small amount on my balance for the next billing cycle.
They have to notify you if you are going over your limit and ask your permission to do so. People would be over their limit by a dollar and get billed $39 for the privilege and sometimes it would trigger the penalty rates adding more to the debt. and they can only charge that once per month so If you go over and make several purchases you are not getting hit more than once a month once Feb 2010 roles around.
this section of the new law also sets up where the fees that are imposed is regulated so that the amount of the penalty is in line with the severity of the penalty starting action.
(Sec. 102) Prohibits imposition of a finance charge, with certain exceptions, upon a credit card account balance that is based on balances for days in billing cycles preceding the most recent billing cycle (double billing cycle) as a result of the loss of any grace period. Prohibits penalties for on-time payments.
Prohibits the charge of an over-the-limit fee unless the consumer expressly permits the creditor to complete the relevant transaction (opt-in).
Allows imposition of an over-the-limit fee only once during a billing cycle. Prohibits its imposition more than once in two subsequent billing cycles with respect to such excess credit, unless the consumer: (1) has obtained an additional extension of credit in excess of the credit limit during any such subsequent cycle; or (2) reduces the outstanding balance below the credit limit as of the end of such billing cycle.
Prohibits a creditor from imposing a separate fee related to the method of payment (by mail, electronic transfer, telephone authorization, or other means), unless the payment involves an expedited service by the creditor's service representative.
Requires any penalty fee or charge to be reasonable and proportional to the omission or violation involved.
Directs the Federal Reserve Board to establish standards for assessing whether the amount of any penalty fee or charge is reasonable and proportional to the omission or violation to which the fee or charge relates.
posted by Chuck at
6:23 PM
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home