The controversial settlement between a number of retail groups and the world’s two largest processors of debit and credit card payments is set to move forward after receiving preliminary approval, but objections to the deal still linger. U.S. District Court Judge John Gleeson recently said that the antitrust settlement between merchants groups and both Visa… Read More
Retailers make fat profit margins on the extended warranties they sell on products, so there’s a little secret they probably don’t want you to know: You can get warranty coverage on your purchases just by paying for them with certain credit cards. These sorts of protections generally fall into two categories: Purchase protection, which protects… Read More
As the first groups of Olympic athletes make their way to London this week, the tourists are soon to follow. According to the official site for the London Olympics, 11 million ticketholders will be at the 2012 games. But while they’re not enjoying their events of choice, there are plenty of other activities to keep… Read More
Thanks to the Credit CARD Act, if your issuer makes a major change in the terms on your account, such as raising your interest rate, you’ll have the opportunity to opt out and pay off the card at the old terms. (I’ve described how this works in a series of blog posts this week.)
This week, I have been detailing the first round of Credit CARD Act changes that go into effect this month. One of the reasons this law passed was due to the outcry by tens of thousands of consumers who complained that issuers had unfairly raised their interest rates. Some saw their rate go up through no fault of their own, but others were due to a misstep: Paying a few minutes or few days late, or going over their limits, for example. These are commonly referred to as “penalty rates.”
The Credit CARD Act changes that go into effect on August 20, 2009 are small potatoes compared to the major changes that will take place in February of 2010. In fact, the Federal Reserve Board summarizes them in just three bullet points on their press release.
For purposes of the new Credit CARD Act, the fact that your issuer closes your account or lowers your card limit is not considered a major change in terms that requires 45-days advance notice. Here’s what the Board said about this:
In an article in today’s Wall Street Journal, Mary Pilon talks about credit card issuers canceling credit card accounts without any warning or advance notice to the customer. In fact, many customers aren’t finding out about it until they go to use their card and are declined at the register.
The credit card bill has passed both chambers of Congress, and will soon be signed into law by President Obama.
Center brings credit card industry execs and non-profit leaders together to come up with ways that the public can be better served … without hurting the creditors’ bottom line … of course! Members include major players, such as: Experian, FairIsaac, Wells Fargo, Visa, USBank, National Foundation for Credit Counseling, Federal Reserve of Minneapolis, Take Charge America, and Target.