Obama Credit Card Laws and Rules After the 2010 Credit CARD Act was Passed
Posted on | April 6, 2010 | Comments Off
In March of 2010 a new credit CARD act was passed under president Obama’s administration in order to better protect card holders as a whole. The Act has a number of new rules all of which change things in favor of the consumer and benefit them.
One of the biggest new changes is that credit card bills must now show how long it will take the card holder to pay off the card making the minimum payment in addition to the total balance on the card. This will allow card holders to know exactly how much debt they are in and how long it is going to take them to pay off their card if they pay only the minimum balance, and hopefully encourage them to pay more than the minimum balance each month.
Another change taking place with the new act is that no one under the age of 21 can register for a credit card without a valid co signer, and credit card companies will no longer be permitted to advertise for cards on college campuses. These two new rules will greatly reduce the number of young college aged students who are getting credit cards, maxing them out, and not being able to pay them off.
On top of these two major changes there are some more technical changes being made to due dates and billing cycle shifts. The entire Act can be read online, and contains all the details about these changes. Overall, it is has been put into place in order to better protect card holders from getting in great amounts of debt and facing odds and ends in charges and fees.
Author: Sylvia Wayne