New credit card rules went into effect today. The legislation hopes to mitigate confusing credit card practices and help consumers manage their debt. Below you will find a summary of the new credit card rules moving forward:
- Bills will be due at the same time each month
- Notification of your payment due date must be mailed 21 days prior
- Information regarding your account must be in "plain language & in plain sight"
- Bills must include how much interest is charged for paying the minimum due
- Calculations must be sent showing the pay off date if you only make the minimum payment & how much cardholders must pay to clear the balance in 3 years
- Nearly all interest rate hikes are prohibited on outstanding balances
- Consumers will be notified 45 days before any interest rate increases
- No interest rate increases are allowed in the year following the account's origination
- Automatic enrollment in over limit/draft programs are prohibited
- Most under age 21 must prove assets and or income equal or greater than the credit limit to be approved for credit or have a co-signer.
Erin