New Credit Card Law: A Relief For Consumers

Personal Finance

New Credit Card Law: A Relief For Consumers

20th August 2009

For a long time credit card debt has been a major headache for many Americans but thanks to the Obama administration, consumers can now breathe a sigh of relief from their credit card headaches. Although the new bill still has other major components that will only go into effect in February 2010, for consumers this is the time to get smart and take advantage of the new law effective today. For a long time I asked the question why students were given credit cards because this meant that we were creating a society of people who were already in debt before they were even given a chance to start earning money.

Personal Finance The credit card industry saw a boom especially over the last ten years with annual earnings for credit card companies running into the billions of dollars. However, with the recession defaults rose to an all time high. Now I'm sure most of us have had those sleepless nights wondering how you're going to make the payments, when the credit card companies call you at work, at school, at home and literally harassed and threatened us to pay our bill or face some kind of legal action.

The new law requires the credit card company to mail bills 14 days in advance and give 15 days prior notice of any changes in terms. This one is a good one because one problem I had with credit card companies is that they were allowed to change terms and conditions without prior notification and expected you and I to just do as they said. Now the new credit card law gives us the power to either accept the terms or not and be notified in advance before those terms are changed.

Now I always say I am really not a fan of personal credit cards however, for business purposes I do advise having one. If you do have one for personal use at least now you can take charge of your credit card but wise spending and paying on time is still advised as with all bills.

Share your thoughts with me on the new credit card law.

Till Next Time!

"Always borrow money from a pessimist, he doesn't expect to be paid back. " - Author Unknown

Comments (6):

Jackie Says: Phew, now we can breathe with the new law! | 08.20.2009 |

Trevor Says: I think the new law is great. Credit card companies now have to behave ethically for a change and I think it's about high time | 08.20.2009 |

Max Says: It's about time! | 08.20.2009 |

Steve Says: Very happy that the consumer has been given some form of power but like you say Kev, caution should be practiced in any case with spending and paying bills timeously | 08.20.2009 |

Tony Says: Yes it has advantages but if consumers don't wise up then it still means you have high credit card debt to settle | 08.20.2009 |

Jean Says: This was long overdue, well done to the Obama administration | 08.20.2009 |

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New Credit Card Law: A Relief For Consumers

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