New Rules for the Credit Card Companies in US. Why can’t they follow them in India? February 20, 2010
Posted by vinodchand in Banking, Credit Card Issues, Credit Cards.trackback
The Federal Reserve’s new rules for credit card companies mean new credit card protections for you. Here are some key changes you should expect from your credit card company beginning on February 22, 2010.
What your credit card company has to tell you
When they plan to increase your rate or other fees. Your credit card company must send you a notice 45 days before they can
o increase your interest rate;
o change certain fees (such as annual fees, cash advance fees, and late fees) that apply to your account; or
o make other significant changes to the terms of your card.
If your credit card company is going to make changes to the terms of your card, it must give you the option to cancel the card before certain fee increases take effect. If you take that option, however, your credit card company may close your account and increase your monthly payment, subject to certain limitations.
For example, they can require you to pay the balance off in five years, or they can double the percentage of your balance used to calculate your minimum payment (which will result in faster repayment than under the terms of your account).
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