Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

New Credit Card Laws May Change Debt in America

I’m sure you get tons of credit card offers in the mail. They all come with tempting offers of low interest rates and no annual fees. But, before checking that box that says, “Yes! Send me my new card!” I ask myself a few questions. How many credit cards do I really need? Does the fine print tell me something different than this great offer?

I realize that a number of people don’t ask themselves these questions. The numbers are so staggering, in fact, that the President has signed a bill attempting to help those suffering through credit card debt.

The Credit Card Accountability, Responsibility, and Disclosure Act attempts to keep credit card companies from using those all too familiar tactics that credit card companies use to keep us paying the premium rates.

Credit card companies are limited on when they can raise their rates. They can still, however, raise rates anytime on new balances with 45 days notice.

There are new restrictions on fees and age limits for being approved for a credit card. The laws have also eliminated double cycle billing (charging interest on debt paid the previous month), change the way your payments are allocated, increased the time period you have to pay your bill, and extended the expiration dates for gift cards.

Though credit card companies will be more lenient, you are still being held responsible for your actions. If you have gotten in over your head in debt, you will still need to seek help.