CARD ACT 2009
CARD Act 2009 is a great piece of legislature that is applicable and must be embraced in many developing countries. Here are some of the features that I see will help millions of consumers.
• Issuers won't be able to hike the interest rates on existing balances as long as customers pay their bills on time
• Requires card payments to be applied to the debt with the highest interest rate first (after minimum payment).
• Prevents card companies from charging over-the-limit fees on a cardholder with a fixed credit limit unless opted for.
• Requires card companies give cardholders 45 days notice of any interest rate increases.
• Requires the due date to fall on the same day each month. If the fixed due date normally falls on a Saturday, Sunday or legal banking holiday, then the due date shall be pushed forward to the next business day after the date. This measure prohibits due dates to fall on a weekend or holiday.
• Demands that creditors print on their statements if the debtor makes the minimum payment only (with no further increases in debt) how long it would take to retire the debt and how much the debtor would pay in interest combined.
• Issuers won't be able to hike the interest rates on existing balances as long as customers pay their bills on time
• Requires card payments to be applied to the debt with the highest interest rate first (after minimum payment).
• Prevents card companies from charging over-the-limit fees on a cardholder with a fixed credit limit unless opted for.
• Requires card companies give cardholders 45 days notice of any interest rate increases.
• Requires the due date to fall on the same day each month. If the fixed due date normally falls on a Saturday, Sunday or legal banking holiday, then the due date shall be pushed forward to the next business day after the date. This measure prohibits due dates to fall on a weekend or holiday.
• Demands that creditors print on their statements if the debtor makes the minimum payment only (with no further increases in debt) how long it would take to retire the debt and how much the debtor would pay in interest combined.
posted by Anand Gopal at 8:13 AM
0 comments
