Learn How Your Credit Card Rights (and Gun Rights) Change Today

A big consumer FYI for you all today.  The new credit card rules go into effect finally.  You may recall my post this fall about how my credit card companies were raising my interest rates for no reason.  Well, all that was so that they could squeeze us responsible folks of some extra cash before these new regulations go into effect today.  Here’s a summary of some key details courtesy of creditcards.com.  You can also go to White House Live

Casting away the debt, Photo by Doug Naugle

at 2pm for a live White House town hall with economic advisor Austan Goolsbee.

Rates, terms, fees

• Payments above the minimum amount due must go toward the balance with the highest interest rate.  For example, I have a card that I transferred a balance to at a really low rate, but I’ve also used that card for new purchases charged at a higher rate.  My payments have to go toward that higher rate first now.
• Due dates must be the same each month, and if the due date falls on a weekend or holiday, payments must be credited on the next business day without a penalty.
• Interest rate hikes on pre-existing balances are banned unless you are more than 60-days late on a payment.  So, basically what my credit card companies did to me last summer is now illegal.  Nice, huh?  Oh, and if you begin to make on-time payments for the next six-months after you were late, they have to restore you to your previous lower rate.
• You have to be given the option to “opt-in”to over-the-limit fees.  If you don’t opt-in, when you try to make a purchase over your available credit, it will be declined.  To me, this is how it should have been all along!  Why would credit card companies allow you to purchase something if you didn’t have the credit available?  Oh, yeah.  So, they can charge you an over-the-limit fee!
• You can’t be charged a fee to pay your bill online, by phone, or by electronic transfer.  I know I’ve been charged this fee before, so I’m glad to see that one gone

Credit and college students

• No one under 21 can get a credit card unless they have an adult co-signer or if they can prove they have enough of an income to pay their debts.  If you are like me, ALL of my credit card problems started in college.  I’m glad politicians finally realized the predatory behavior of credit card companies on college students and put an end to it.
• No more freebies (t-shirts, pizza, etc.) from credit card companies if you sign up on college grounds or at school-sponsored events.  This also applies to anything within 1000 feet of the campus boundary.

Notifications

• You have to be given 45-days notice of any changes to your account.
• Companies have to tell you how long it will take you to pay off your balance if you only make the minimum payment and how much interest you will be charged.  They also have to tell you how much your payment SHOULD be if you want to pay off your balance in 36 months. AWESOME!

Oh, and you can now carry guns to U.S. National Parks.  No, seriously, it’s actually part of this law.  So, maybe there’s my solution to my how-to-destroy-my credit-cards problem…head to Big Bend with a loaded rifle and stack of credit cards!  ROAD TRIP!  Who’s in!?

Do you think these new regulations will make a difference or do you think that credit card companies will find some other way to screw us over?