by Jaynee Sasso

Although the Credit Card Accountability Responsibility and Disclosure Act, or card Act of 2009 aims to end abusive practices by credit card issuers, a consumer must be able to use credit wisely in order to benefit. Too many people continue to be buried under a mound of debt. According to the Consumer’s Union, the nonprofit publisher of Consumer Reports, the average low and middle income household has an average of $8,650 in credit card debt. The card Act imposes the following regulations on credit card issuers:

1. Issuers must give 21 days to consumer to pay.
2. 45 days advance notice must be given to consumer to notice of change in contract terms.
3. Credit card contracts must be easy to understand.
4. Restrictions have been placed on interest rate increase on existing balances.
5. Preserves the right to payoff on the old terms.
6. Places limit on fees and penalty interest.

[To read this full article, go to our free electronic edition, UVW Digital]

Date of publication: October 21, 2009
Read more in this section: the Deal