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How Will The New Federal Credit Card Laws Effect Your Life In Illinois?

In 2009, President Barack Obama signed the CARD Act into law – a series of new credit car rules meant to better protect the consumer and better regulate the credit card industry. These laws went into effect on Monday, February 22. But how do the new credit card laws affect your lives in Illinois and Missouri?

Here is a run down of the big credit card changes:

• Minor cannot sign up for cards without a co-signer such as a parent or guardian. This will stop credit card companies from preying on young people who may not have a grasp of how to be responsible with credit or those trying to support themselves through school.
• It will be a tougher process to get approved for a credit card, preventing those who probably shouldn’t have more credit from getting it and falling deeper into debt.
• Statement must be sent out three weeks in advance, and the due date will always fall on the same date, helping customers plan financially and reducing the number of late payments.
• Credit card issuers can’t increase rates on already-established balances and credit card companies must tell customers in advance if they are planning a rate increase.
• Fees will be restricted in regards to customers going over limit or paying late.
• Double-bill cycling, a process in which a customer may be subject to finances charges on payments already made, has been outlawed.
• Payments will now be allocated to the balances with the highest interest rate, not the lowest.
• Gift cards will now be good for at least five years before expiring.

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