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MARKS, MS

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WEEKLY
03/25/2018
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BB~ impatt c,f llew credit card

II ~ i., ) explains
regulations

Ridgeland, MS, - February 22 increased 1<llt' let','.,
was when new consumer slalelllellb
protections kick in that are laid delivered 21
out in the Credit Card date
Accountability Responsibi lity and can IHi 1\ I I
Disclosure Act of 2009 (CARD). deadlilll: \)t'IOll: } I
The Bette~eau charge card holdl"
(BBB) Serving Mississlpp'j onlim;, nverllw pi "I'
explains what these new unless Ihe pay"
IIi v tile phone ei t her un tile Jue dat cur
tlil' previous
Overpayments go tnward
interest balances. II' the
.' ",:\J\ iii card holder has varied in[t'resl rates
;11" l,dll1ol 1'01' ditlerent services or accounts,
pay allY overpayments must be applied
10 those that arc incurring the
;'1 Ilk OVlT i""(Ste CREDIT CARDS, page II)

nationwide consumer protections '.

mean to cardholders. ~-
cycles. When calculating finance
It is reported in a
CreditCards.com survey that
2DiT CARDS, from page 3 resulting fees.
Increased disclosure on minimum charges, card issuers can no longer
nearly 75 percent of cardholders ighest intere~t rate. payments, Card issuers must disclose employ two-cycle ordouble billing­
Over the limit opt-in. Card holder~ how long it will take the card holder a method that causes cardholders to
admit to not reading the terms and
must opt-in to be able to exceed their to pay offtheir bill ifthey pay only the pay interest on previously paid
conditions of their credit cards. balances.
credit limit-and subsequently be minimum monthly payment as well
The BBB recommends that all charged an over-limit fee by the issuer as how much the they would need to To learn more about the new
card holders familiarize If a card holder chooses not to opt-In, every month to pay offthe balance consumer protections,
themselves with the fine print and then he or she will not be able t() III .'6 months. Creditcards.com has a comprehensi ve
review the new provisions set out exceed theircreditlimit and Say goodbye to double-billing breakdown ofthe CARD Act of2009.
by the new CARD Act.
"Credit card debt can mount
when times are tight, and
consumers need to take the time to
understand the fine points of their
credit card agreements and the
different and penalties that
can chisel away at the family
finances," said Bill Moak,
President/CEO of the Mississippi
BBB. "While CARD provides
more consumer protections, card
holders still need to keep an eye
on changes to their accounts and
respond quickly if they aren't
satisfied."
Following are just a few of the
new credit card regulations and
consumer protections as a result
of the Credit CARD Act:
More notice for interest rate
changes. Card issuers must give
an advance notice of45 days when
making interest rate changes.
Additionally, promotional rates
must last for at least six months
and, unless disclosed up- front,
card holders cannot have their rate
increased in the first year.
Cardholder opt-out. If there are
significant changes made to the
terms of the account, card holders
can choose to reject those changes
and will have five years to payoff
the balance under the original
terms.
Older age restrictions added.
Card issuers are no longer allowed
to issue a credit card to anyone
under 21 unless they can prove
th~y have the means to repay debt
or if an adult over 21 co-signs on
the account. Credit card
companies also face new
restrictions on how they can
promote cards to college students
and can no longer offer free gifts
as enticements.
New rules for monthly
statements. In response to
complaints that bill due dates were
being moved up-and leading to