Credit Card Accountability Responsibility and Disclosure Act of 2009
May 2009 marks the beginning of 9 month waiting period before the Credit Card Accountability Responsibility and Disclosure Act of 2009 goes into effect which Congress passed last week. February 2010 will be the beginning of an entirely different credit card billing infrastructure. S. 414 covers many of the areas that consumers have been unhappy about for years. Credit Card companies will be required to send advance notice of increases in annual percentage rates of interest with a statement of the credit card holders’ right to cancel the card before the increase. The bill puts a freeze on fees and interest rates on canceled cards as well as prohibits over-the-limit charges when the over-the-limit situation is created by fees or interest charges. These are just a sample of the changes contained in the Credit Card Accountability Responsibility and Disclosure Act of 2009. Anyone who owns a credit card owes himself to take the time to get educated on the contents of Credit Card Accountability Responsibility and Disclosure Act of 2009. Many of the provisions will affect credit card holders in good standing as well as those struggling with the payments to credit card companies.
Identity Theft News
On May 20, 2009, Federal Trade Commission's filed actions against Coalition of Police and Sheriffs, Inc., Disabled Firefighters Fund, American Veterans Relief Foundation, Inc. in “Operation False Charity”. The identity that was stolen was that of legitimate fund raising companies. The two FTC cases include allegations of tricking consumers into thinking that the money given would go to local disabled police, firefighters, or military families. The use of legitimate sounding names gave the companies a veneer of credibility that was unfair. The s used misstated the percentage of the funds that would go to the cause. The funds almost exclusively went to the defendants and their employees. While judgments were issued for a total of over $20 million against the three defendants they were suspended due to documented “inability to pay”.
A new publication available online, Avoid Charity Fraud, gives detailed guidelines on how to avoid being duped. The page can be found at the official Fair Trade Commission's website, http://www.ftc.gov/charityfraud
Consumer Money Saving Tips
In the economic reality currently being experienced by credit card companies, many holders are receiving notices of a reduced credit limit on their cards. You might think that is fine as you do not want to incur any further debit. What you may not think of at first blush is that by lowering your credit limit your ratio of indebtedness increases and lowers your overall credit rating. It then becomes obvious that credit card companies are the ones in control of your credit rating, not you, as long as you have credit card debt. Pay off your cards as soon as possible as the new laws will not go into effect until February 2010 that reigns in changes that effect consumers so negatively.
Coastal Credit Solutions, Inc. operates a financial market place that matches Consumers and Businesses with debt eliminating and/or alternative financing service providers. If you have over $5,000 personal or business credit card debt or are seeking small business financing, please call us 866-205-8370 for a FREE no obligation consultation.
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