Credit Card Act of 2009
Herea are some provisions that take effect in February 2010
- Must give 45 days notice before raising interest rates.
- Must apply payments to the highest interest rate balance first.
- Minors (i.e., under 21) must have a cosigner or prove they have sufficient income/assets. Credit limit cannot be increased without cosigner approval.
- Consumers will need to “opt in” to charge above their credit limit (e.g., with associated fee).
- Existing balance will not be subject to “universal default.”
- Payment must be over 60 days late before the interest rate can be raised on balances; if the rate is raised, it must go back to the lower rate if minimum payments are made on time for six months in a row.
- Closure or cancellation of an account will not constitute a default and will not force repayment faster than proscribed limits
- Promotional interest rates must last for at least 6 months.
- Elimination of double cycle billing (yeah!!!)
- Must mail statements 21 days before due date.
- Prepaid/store/gift cards cannot charge a inactivity charge until there has bee no activity for 12 months.