The good news for people who use credit cards is that there are laws the credit card companies have to follow. These laws protect your consumer rights and keep credit card issuers from taking advantage of you.
Credit Card Accountability, Responsibility, and Disclosure Act
In 2009, the Federal government passed a series of laws that protect credit card users from predatory credit card issuers. Here are some of the provisions of the Credit CARD Act, which amends the Truth in Lending Act.
Credit card issuers can’t raise the rate on your credit card unless they give you a 45-day advance notice. During that period of time, you can opt-out of the rate increase and pay your balance off at your old interest rate, but your card issuer can cancel your credit card if you make that choice. Card issuers don’t have to give you an advanced notice if you have a variable APR, if you are 60 days past due with your payments, if a promotional rate is expiring, or if a hardship agreement is ending.
Your payment due date must fall on the same date every month. Payments received by 5:00 pm on the due date are on time. You can’t be charged a late fee if your due date falls on a day the card issuer doesn’t process payments as long as your payment is received by the next business day. Credit card issuers have to mail your billing statement at least 21 days before your due date so you have a chance to make your payment.
Fair Credit Reporting Act
Credit card issuer typically report details about your credit card and payment history to the credit bureaus. You have the right to check your credit report to verify that information on your credit report is accurate. If you find errors on your credit report, you can dispute those errors either with the credit bureau or the credit card issuer.
Fair Credit Billing Act
If you find an error on your credit card billing statement, you have 60 days to dispute the billing error, in writing, with the credit card issuer. Once the card issuer receives your dispute, they will do an investigation. In the meantime, you don’t have to pay the disputed charges; you won’t be charged interest or late fees on the charges while they’re in dispute.
Truth In Lending Act
Credit card issuers are required to disclose information about pricing and conditions of a credit card whenever they’re marketing a new credit card and when your existing credit card terms change.
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