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New Credit Card Rules Affect Ability to Give Credit Card Debt Help in MO and IL

Though the new credit card rules were put forth in 2009, many of the biggest consumer protections won’t go into effect until February 22nd. So, what are these big consumer protections? Here are some of the highlights:

• Now, when credit card companies change the terms of an account, the cardholder has the right to opt out. They can then close their accounts based on the old terms and take up to 5 years to pay it back.
• People under 21 cannot get a credit card unless they have an adult co-signer or they can show proof of enough income. The new rules are also limiting the amount of marketing credit card companies can do on college campuses.
• In an attempt to reduce late fees, credit card companies now have to give at least 21 days to make payments on monthly bills. This should stop credit card companies from arbitrarily moving up or changing due dates.
• Card companies must disclose the consequences of only making minimum payments (i.e. how long it will take to pay off the card.)
• Payments that are more than the minimum will be applied to the higher interest balances first, in the event that a consumer has more than one account.

Great, right? Won’t these rules be the solution to credit card debt in America? Maybe not. There are some important things to note about these new laws. While many of them will help consumers, there isn’t anything in the laws that will govern the interest rate. The solution, instead, was to give people the chance to close their account to avoid high interest rates. Unfortunately, I would bet that more people would be willing to accept a higher interest rate than go without a credit card.
The real question is: How will credit card companies protect profits? These new laws will certainly limit their money making abilities--and they will certainly find a new way to make it back. The need for a St. Louis Missouri or Fairview Heights Illinois bankruptcy attorney to provide credit card debt help won’t be over.

If you already need credit card debt help, these laws might be too little, too late. You would be well advised to request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.” It may just provide a solution to credit card debt that could really work.

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