NEW CREDIT CARD LAW – BE CAREFUL WHAT YOU ASK FOR!
What is the New Credit Card Law & How Will it Affect Me?
On May 22, 2009, President Obama signed a new reform to the credit card law.
What Does the New Credit Card Law Do?
The new law prohibits credit card companies from bumping up rates for no reason and ends late fee traps.
It also means credit card companies can’t increase your rates for one single day late payment.
Plus, credit card companies will be required to reduce your interest rate back to the old rate once you have paid on your card for a period of time.
So what’s the problem?
What are the Drawbacks?
While the new law sounds great for people who are forced to live on credit card debt between paychecks, there are some drawbacks.
The biggest drawback is the vanishing grace period. You won’t be able to charge something and simply pay it off when you get the monthly statement to avoid interest rates. Credit card companies will charge you interest from the date of purchase to the end of the billing cycle.
Another drawback is that you might not be approved for that high interest rate card, or any card for that matter. Your credit card company may even drop you.
Plus, in order to offset the loss of revenue, credit card companies will be forced to raise interest rates for ALL card users (even people who pay their bills on time and have good credit).
Annual fees will most likely become the norm again to help defray the loss of profit for the credit card companies.
Variable interest rates replace low fix rates to keep up with the cost of credit card companies borrowing money.
No-interest balance transfers will become a thing of the past.
Credit card reward programs will be reduced or eliminated.
Get more information on the credit card law from Whitehouse.gov.
Now What?
After all is said and done, if you are still struggling to make ends meet under the weight of debt, speak with one of our highly skilled & compassionate bankruptcy lawyers. We can help you find debt relief through Chapter 7, Chapter 13 or Chapter 128 (Wisconsin only bankruptcy alternative).
Get your FREE consultation now – just tell us how to get a hold of you and we’ll be in touch shortly.
