New credit card regulations, effective Monday February 22, 2010, may be able to give customers more rights to reasonable fees, stable, but not necessarily low, interest rates, and contracts in addition to providing billing statements, and terms that are easier to understand. These credit card reforms were implemented to prevent abusive and exploitative practices by credit card companies that could result in excessive fees and debt.
Let you know ahead of time Some of these new regulations include requiring credit card companies to give 45 days of notice before increasing interest rates or fees. As a result, consumers can apply payments to balances with higher interest rates, and to send bills 21 days before their due date in the mail. In addition, the new regulations disallow the increase of interest rates to customers just because they make late payments on related bills.
Even with these new laws in place, there are still loopholes that allow finance companies to come up with other ways to extract income from consumers through other types of costs and fees. Because of this cat and mouse game, lawmakers are encouraging the creation of a Consumer Financial Protection Agency ( CFPA ) as a legal entity to protect the rights of consumers.
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