My OperaCARD ACT What You Should Know
Monday, June 7, 2010 8:23:01 PM
Recently the CARD act went into effect, which means that consumers will be able to enjoy relief from double cycle billing and arbitrary rate increases. The CARD act also promises that credit card bills will be much easier to read. However, with the new act comes a new series of rules and regulations that savvy consumers should know about.
First,there is a possibility that consumers may find that they are being slapped with a variety of charges and new fees. This is because creditors have already been implementing new fees aggressively or raising ones that already did exist to try to make up for any revenue that could be potential lost as a result of the CARD Act.
Some examples of these fees are Discover's new 2% fee on all purchases made outside the United States, and a bump from 3% to 5% fee for rolling over a balance from one credit card to another.Because there are absolutely no restrictions on the types of fees creditors can hit you with, cardholders are cautioned to pay extra close attention to the "Terms and Conditions" section of their statement so they know what exactly they are being charged for.
Credit will also be harder to come by. The amount of credit that was available to consumers by card companies went down about 7% between March and September of last year. And it will only tighten further. According to the CARD Act, credit card companies are going to be extremely restricted in their marketing ploys that cater to college students, which will potentially cut down on an important part of their business.
Thus, consumers with a mediocre or bad credit history will determine that it is way more difficult to get a card or have their credit limit extended.
Fewer rewards are also expected. Issuers are becoming more cheap with their benefits in an attempt to save money. For example, American Express recently told its consumers that they would not be able to accumulate reward points on their purchases if they were late with a payment. To avoid missing out, analysts caution that cardholders should carefully read any notices they get from their credit card company about changes to their rewards or loyalty program.
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