Credit Issuers Clamour to Maximize Profits Before New Credit Legislation Goes Into Effect
To help protect U.
S.
consumers against predatory lending practices by banking credit card issuers, The Federal Reserve Board has recently put into place a ruling that coincides with a recent approved legislation.
The new Credit Card Act goes into effect on February 22, 2010 and will lawfully hold these banks to federal guidelines created to prevent the practice of harmful policies towards U.
S.
creditors by requiring more transparency in the disclosure of terms and conditions of an open account.
Another major component is the opportunity for people to "opt out" of significant changes in their current agreements.
One of the main things that will be different will be the stopping of increased interest rates during the first initial year of an newly open account and curb the practice of retro-active increases.
Under this new law, consumers who are under 21 years old are going to have to prove and confirm that they have the means to afford an account by showing employment payroll or having a co-signer.
Also, credit issuers will be required to get consumer consent prior to making any changes in charge fees if an account goes over a stated credit limit.
Structuring transactions in a manner that maximizes the fees and charges on interest will also be against the law once this goes into effect.
With less than 2 months until this legislation is activated, many banking credit issuers are changing charge account terms to get as much profit as they can until the law goes into effect.
A nation-wide awareness has been started to advice people to carefully look at each and every statement that is received before February 22, 2010 to confirm no predatory lending practices are being taken against their most used or best credit cards.
S.
consumers against predatory lending practices by banking credit card issuers, The Federal Reserve Board has recently put into place a ruling that coincides with a recent approved legislation.
The new Credit Card Act goes into effect on February 22, 2010 and will lawfully hold these banks to federal guidelines created to prevent the practice of harmful policies towards U.
S.
creditors by requiring more transparency in the disclosure of terms and conditions of an open account.
Another major component is the opportunity for people to "opt out" of significant changes in their current agreements.
One of the main things that will be different will be the stopping of increased interest rates during the first initial year of an newly open account and curb the practice of retro-active increases.
Under this new law, consumers who are under 21 years old are going to have to prove and confirm that they have the means to afford an account by showing employment payroll or having a co-signer.
Also, credit issuers will be required to get consumer consent prior to making any changes in charge fees if an account goes over a stated credit limit.
Structuring transactions in a manner that maximizes the fees and charges on interest will also be against the law once this goes into effect.
With less than 2 months until this legislation is activated, many banking credit issuers are changing charge account terms to get as much profit as they can until the law goes into effect.
A nation-wide awareness has been started to advice people to carefully look at each and every statement that is received before February 22, 2010 to confirm no predatory lending practices are being taken against their most used or best credit cards.
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