First parts of Credit Card Act of 2009 now law
»Play Video
SEATTLE -- It's a big day -- the first parts of the Credit Card Act of 2009 are now law.
From now on, credit card companies must give you 45 days notice if they plan to raise your interest rate. The previous requirement was just 15 days.
"So this is going to give consumers an additional month of notice before they see any chances in their interest rates," said John Ulzheimer with credit.com.
Ulzheimer says that extra time gives you more time to ask the lender to reconsider the rate hike.
"Also if they're not successful in pleading their case to really take their business elsewhere; opening a new card or transferring a balance from one card to another," he said.
The new law also requires credit card companies to give you a 21-day grace period. Up till now, 14 days was legally good enough.
"The day that they mail your statement to you or the day that they e-mail your e-statement to you, from that day they have to give you 21 days before they require the minimum or payment in full if you choose to be one of those folks who actually pays in full," he said.
This should make it easier for you to get your payments in on time and avoid those costly late fees.
From now on, credit card companies must give you 45 days notice if they plan to raise your interest rate. The previous requirement was just 15 days.
"So this is going to give consumers an additional month of notice before they see any chances in their interest rates," said John Ulzheimer with credit.com.
Ulzheimer says that extra time gives you more time to ask the lender to reconsider the rate hike.
"Also if they're not successful in pleading their case to really take their business elsewhere; opening a new card or transferring a balance from one card to another," he said.
The new law also requires credit card companies to give you a 21-day grace period. Up till now, 14 days was legally good enough.
"The day that they mail your statement to you or the day that they e-mail your e-statement to you, from that day they have to give you 21 days before they require the minimum or payment in full if you choose to be one of those folks who actually pays in full," he said.
This should make it easier for you to get your payments in on time and avoid those costly late fees.
