The Credit Card Act takes effect tomorrow. So how will that affect you? Some of the most important changes…
Creditors must give 45 day advance notice if they are going to raise the interest rate and they cannot raise the interest rate on existing or outstanding balances.
Payments go toward your most expensive balances first.
You have a minimum of 21 days from the day your statement is mailed to pay.
There are no extra fees if you pay your bill by phone, mail, or online.
And that’s just the start! To read a quick list of all the changes, check out this explainer on BillShrink.com, a site that helps consumers find low-cost cell phone plans and credit cards.
August 19th, 2009 at 12:21 pm
This is great to hear!
I just wanted to let you know that your link to Billshrink.com doesn’t appear to be working.
August 19th, 2009 at 12:37 pm
A little off the subject, but: It’s too bad that this “no extra fees” for method of payment doesn’t apply to my insurance carrier (who perhaps I shouldn’t name). I have an individual plan, and I’m charged $2.00 six times a year to pay my premium by mailed check. I wouldn’t be charged that fee if I would allow my premium to be automatically deducted from my bank account. Needless to say, this really irks me. Grrrrrr!
August 19th, 2009 at 1:11 pm
Fixed the link! Thanks for the heads up Melissa.
August 19th, 2009 at 2:17 pm
Sadly, most of the credit card companies already raised their interest rates on existing and new balances before this goes into effect. Also, they put any payments toward the highest balance but not the one with the highest interest. My 80 year old Mom has been arguing with Providian (now Chase) about why she can’t pay off the two higher interest balances, which are less than $500 so she would only have to pay the larger amount with the lower interest. But they won’t let her, so who is going to rein in this people? Once I get out of debt (anyone want to buy a kidney?), I am NEVER going to use credit cards again!
August 20th, 2009 at 8:47 am
It’s gratifying to see this change from unfair billing practices. Consumer have some power. Let’s keep the changes coming…
August 20th, 2009 at 3:44 pm
If there is a credit card company out there who will take over my debt at a low interest rate, I will switch to them pronto!
September 1st, 2009 at 12:38 pm
billshrink doesn’t appear to be working again. I really want to take a look at it. I was in the middle of the credit card hunt and received an “error 53″ notice.
September 1st, 2009 at 12:42 pm
Sorry to hear their site is having problems. It’s not my site so I have no control but I hope they get it up and running for your sake!
Hmmm…just tried the homepage and it worked for me: http://www.billshrink.com/