Law and debt – Credit card law introduced in 2010

Some new credit card law had been introduced in 2010 which were supposed to help the consumers avoid incurring credit card debt. Two set of laws were introduced in 2010 – one on 22nd February and another on 22nd august, 2010. It is important for you to know both set of rules so that you are able to avoid getting into credit card debt.

The credit card law

As per both the set of law the credit card companies cannot:

1. Increase interest rate on existing balance till the promotional rate expires or the variable indexed rate increases or if you are more than 60 days late on your payment.

2. Charge over limit fees if not the card holder allows that during the agreement.

3. Charge inactivity fees from eh card holders but can close the account if unused for a certain time.

4. Charge multiple fees for a single violation like both the late fee and the retuned payment fee.

5. Issue card to consumers below 21 years as they will need a co-signer for getting a credit card if they aren’t able to meet the income requirement to get a card.

In addition to the above, the credit card issuers will have t serve a 45 days notice before increasing the interest rate or changing any other terms and conditions of the credit card.