Many of the laws of Accountability, Responsibility and Disclosure of the Credit Cards entered into force immediately, but most of the laws recently went into effect this past Monday, February 22. They mean and how they apply to your person? Find out about the new laws and protections for the consumer as well as the new strategies of the credit card to continue charging more. Learn because you do not know your terms of credit is like lending money to a stranger.
It is public knowledge that these laws to curb the abuse of company credit cards are not enough. In the months prior to the law coming into force, the companies of a credit already had adopted tricks and traps intended to evade the law.
From 01 February 2018, the companies issuers of credit cards:
No longer will be able to increase the interest rate on an existing balance unless the holder of the credit card this delayed 60 days or more or he or she has access to a type of interest variable. If the interest rate of the credit card will increase due to delinquency (non-payment) but the owner pays on time for six consecutive months, the company credit cards should reduce the interest rate to the original value.
You must apply any amount above the payment minimum monthly balance with the rate of interest high. At the end, when you pay more you anger the balance that is costing more to maintain.
You should use only the balance of the current month to calculate interest charges. No longer allowed to calculate the charges of interest, using the average of the balances of the current month and the previous month of your credit card.
Stops the payment for exceeding the limit of your credit card unless the owner has asked and stated that you want permission for going over your limit and that by doing so there will be an additional fee for exceeding.
You must notify the client 45 days in advance of any significant change to the terms of contract of the credit cards.
It allows a waiting period of 21 days from the mailing of the payment minimum, and when it imposes a charge for late payment when you pay your credit card. You open noticed that you now receive the accounts (the“statements”) of credit cards much earlier than before.
It must limit the payments to credit cards during the first year that it is open to not more than 25% of the limit of credit initial. This rule does not include extra payments for tardiness or payments for using the credit card above your limit.
As I said at the beginning, many of the rules contained in this law are considered ineffective when the companies issuers of credit cards have found new ways to continue charging excessively. You can’t expect the government to help you with the credit cards, but be responsible for your financial health.