Key Components:
- Prevents credit card issuers from increasing interest rates on cardholders in good standing for reasons unrelated to the cardholder’s behavior with respect to that card
- Requires payments to be applied first to the credit card balance with the highest rate of interest, and to minimize finance charges
- Requires credit card statements to be mailed 21 days before the bill is due rather than the current 14
- Requires cardholders to be given 45 days’ notice of any interest rate increase
- Prohibits issuers from charging a fee to allow a credit card holder to pay a credit card debt, whether payment is by mail, telephone, electronic transfer, or otherwise
Source: White House and Sen. Chris Dodd
Key Dates:
February 22, 2010:
Most provisions of the credit card bill go into effect. Federal Reserve Board to issue a final rule on the following provisions:
- Interest rate reduction consideration requirements
- Preventing deceptive ads for credit reports
- Gift card protections
August 22, 2010:
The following provisions go into effect:
- Interest rate reduction consideration requirements
- Reasonable and proportional penalty fees
- Gift card protections
May 22, 2011:
The following provisions go into effect:
- Review and report on consumer credit plans and regulation
Source: Defendyourdollars.org
(Black Enterprise Credit Card Checklist)
Related articles:
Get Ready for the New Credit Card Rules
How New Credit Card Reform Affects You