The government hasn't done a whole heck of a lot to help consumer debtors. But one positive step it took was passing the Credit CARD Act of 2009, which goes into effect TODAY: February 22, 2010.
The CARD Act provides some solid protections to consumers. However, the credit card companies wouldn't be as profitable as they are today if they weren't good at coming up with new and creative ways to gouge consumers.
As the Center for Responsible Lending says, "It pays to remain alert to tricks, traps and any changes in your statement."
Examples include:
1. Strange and arbitrary charges on your statement, such as charges for purchases abroad, for receiving a paper statement, for having a zero balance and even for vague reasons such as "account management."
2. Closing your account or reducing your credit limit without notice. The CARD Act requires a 45-day notice before a credit card issuer can penalize you or raise your interest rate on a newly lowered credit limit.
3. Credit card issuers can still change terms on credit cards for small businesses without notice.
4. Credit card issuers can still raise your interest rate. Though they are required to give you 45 days notice. Also, you have the option of not accepting the rate increase and canceling the card. And if you have a balance, you then have 5 years to pay off that balance.
5. Raising your monthly minimum payment by making it a percentage of your total balance.
6. Requiring customers to submit to arbitration or mediation to resolve a dispute and precluding customers from suing in a court of law. The CARD Act prohibits credit card issuers from doing this any longer.
If you're struggling with credit card debt and considering filing for bankruptcy in Las Vegas as well as non-bankruptcy options, it helps to have good Las Vegas bankruptcy attorneys to provide the Las Vegas bankruptcy information you need to deal with your debts and get a fresh start.
Please contact us for a free consultation to learn more about your options and have the benefit of Haines & Kriegers' extensive debt negotiation and bankruptcy experience on your side.
The CARD Act provides some solid protections to consumers. However, the credit card companies wouldn't be as profitable as they are today if they weren't good at coming up with new and creative ways to gouge consumers.
As the Center for Responsible Lending says, "It pays to remain alert to tricks, traps and any changes in your statement."
Examples include:
1. Strange and arbitrary charges on your statement, such as charges for purchases abroad, for receiving a paper statement, for having a zero balance and even for vague reasons such as "account management."
2. Closing your account or reducing your credit limit without notice. The CARD Act requires a 45-day notice before a credit card issuer can penalize you or raise your interest rate on a newly lowered credit limit.
3. Credit card issuers can still change terms on credit cards for small businesses without notice.
4. Credit card issuers can still raise your interest rate. Though they are required to give you 45 days notice. Also, you have the option of not accepting the rate increase and canceling the card. And if you have a balance, you then have 5 years to pay off that balance.
5. Raising your monthly minimum payment by making it a percentage of your total balance.
6. Requiring customers to submit to arbitration or mediation to resolve a dispute and precluding customers from suing in a court of law. The CARD Act prohibits credit card issuers from doing this any longer.
If you're struggling with credit card debt and considering filing for bankruptcy in Las Vegas as well as non-bankruptcy options, it helps to have good Las Vegas bankruptcy attorneys to provide the Las Vegas bankruptcy information you need to deal with your debts and get a fresh start.
Please contact us for a free consultation to learn more about your options and have the benefit of Haines & Kriegers' extensive debt negotiation and bankruptcy experience on your side.
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