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First Wave of New Credit Card Consumer Protection Rules Goes Into Effect Today.

This is just a reminder for those of you who are unlucky enough to still carry a balance on your credit card(s) – the first phase of the Credit Card Accountability Responsibility & Disclosure Act take effect today.

The Credit Card Accountability Responsibility & Disclosure Act sets forth a new collection of regulations on the credit card industry, and is set to take effect in two phases: one today, and the next in February of 2010.

August 20th, 2009 Changes.

Written notice of rate hike.
Starting today, Credit Card companies must provide written notice 45 days prior to any rate increase or substantial change in terms. If you’re unhappy with the rate change, you can decline it by closing the account. At that point the Credit Card Company must allow you to pay off the balance under the previous terms within five years. Watch out though – they can increase the minimum payment as much as 100%!

Increased grace period.
Account statements must now be mailed or delivered at least 21 days prior to the payment due date. I’m not sure how they can enforce this exactly, with the post office being what it is but I suppose if you make a habit of saying you got your statement less than 21 days out from the due date you’d lose credibility.

Feb. 2010.

The most restrictive protections are coming next year and are likely to cause some rethinking by the credit card companies about their business model. It’s about time too.

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