Anti-Consumer Behavior
 To Be Prohibited By Card Issuers.

 

Treasury Secretary Timothy F. Geithner said the bill "will  help create a more fair, transparent and simple consumer credit  market." But what will it mean to consumers and when will it be in force?The legislation will force the $1 Trillion card  industry to reinvent itself and consumers to rethink the way they use  plastic. President signs it into law.
 
 
WASHINGTON:   Congress recently gave its final  approval to a bill that would mandate sweeping new controls on the credit  card industry, with four days the President signed it into law. The effective date is Feb. 2010 

Major Provisions Of The New Rules:
 

Existing balances: Issuers cannot retroactively change the rate on an existing balance unless the account is 60 days delinquent.

Payments: A consumer payment above the minimum applies first to the balance with the highest rate.

Teaser rates:  Issuers cannot raise rates for the first year after an account opened. Promotional rates must last at least six months.

Bills: Issuers must send a bill 21 days before the due date.

Over limit: Issuers cannot charge over-limit fees on credit cards unless the consumer has signed up to allow such transactions.

Minors: For consumers under 21 years old, a company  must get the signature of a parent or another to take responsibility  for the debt, or it must obtain proof that the under-21 consumer can  repay credit.

Disclosure: Cardholders must get 45 days notice of change in terms.