Act On The Card Act Of 2009
Now that the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD) has been implemented, you may want to act quickly when you receive information from your credit card company. While the CARD Act may help to reign in rogue credit card issuers with a bevy of new laws and restrictions, it also creates new loopholes which will bring a variety of new problems.
New Fees.
The CARD Act does not restrict the types of fees that your credit card issuer can charge. Look for new annual fees, dormancy fees, and statement fees. You should get a notice from your card issuer 45 days in advance for any fee change, so take time to read all of the information sent.
Opt-Out Closure.
You will start to see "Opt-Out" notices come through for a variety of card activities, like going over your credit limit. Unfortunately, in many cases when you opt-out, your account will be closed, so it may be better to not opt-out depending on the situation.
Promo Rates.
While the new Card Act requires promotional rates to extend to at least 6 months, you should be aware that card companies are not subject to the 45 day notification requirement when that promo rate expires. Your rate will go to the current annual percentage rate at the end of the promo, so take a moment to determine how a shift like this will affect the interest cost of your purchases.
Read Your Mail.
You may think it is junk mail, but it could be a mailing from your credit card company notifying you of a change. There are no rules in the CARD Act that say a notification must look like a notification. You may also find that notifications are buried in fine print, so take a good look at all your mail.
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