Credit Card Reform Bill Passed
Congress recently passed a credit card reform bill that is intended to overhaul the credit card industry and protect consumers from interest rate hikes and penalty fees.
If you have a New Castle Bellco FCU Visa credit card, the majority of these provisions will not affect your account. Currently, your credit union does not charge late or over-the-limit fees and we do not adjust interest rates on delinquent accounts.
Here is a look at how some of these changes will affect consumers.
What impact will this legislation have on interest rates?
Issuers will have to wait 60 days before raising the interest on late-paying customers, and they will be required to reinstate the old rate once the cardholder makes payments on time for six months.
The interest rate cannot be raised on any outstanding credit card debt if a consumer is late paying other credit cards.
How about the fees that credit card companies charge?
A fee may not be charged to pay off credit card debt by mail, telephone or electronic transfer, except when someone’s help is required to expedite the payment.
Credit card terms and conditions.
Credit card holders must receive 45 days’ notice for any interest rate, fee or finance charge increases.
Issuers will have to post their credit card agreements on the Internet.
The legislation aims to protect people under 21.
Those who are under 21 will require the signature of a parent or guardian who will take responsibility for the debt. A signature is not required if they have the financial means to repay any balances they might carry on the card.
Credit card issuers will have 9 months to implement the new regulations. If you have any questions concerning these changes or opening a Visa, contact the credit union office.
