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