Credit Card Rules Change Banks' Notification Policies
August 19, 2009
By: Joe Taylor Jr.
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Two provisions of the Credit Card Accountability Responsibility and Disclosure (CARD) Act take affect this month, impacting the ways that credit card issuers communicate with their customers. For cardholders, these new rules reduce the risk of missing payments due to delayed deliveries. They also address critics of the credit card industry, who accused many banks of relying on tight time windows to help accrue late payment fees. Specifically,
- Credit card issuers must now mail statements a minimum of 21 days before an accounting cycle's due date.
- Any changes to account terms, especially interest rates, must be announced in writing at least 45 days in advance.
Most major credit card issuers have already notified customers of changes in account terms, with many banks burying rate hikes or other adjustments in small print on statements. The new rules set the stage for more sweeping changes to take place in February 2010, involving the ways that banks calculate finance charges, set interest rates
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