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BBB E X l ? l ~ i n s Impact of NewCredit Ciiel RegulationsFebruary 22 was when new

consumer protections kick in thatare laid out in the Credit' CardAccountability Responsibilityand Disclosure Act of 2009(CARD). The Bctter BusinessBureau (BBB) Serving Mississippi cxplaim what these new na-tionwide consumer protectionsmean to cardholders.

It is reported in aCreditCards.com survey thatnearly 75 percent of cardholdersadmit to not reading the termsand conditions of theit creditcards, The BBB recommendsthat all card holders familiarizethemselves with the fine printand review the new provisionsset out by the new CARD Act.

"Credit card debt can mountwhen times arc tight, and consumers need to take the time tounderstand the fine points of theircredit card agreements and thcdifferent fees and penalties thatcan chisel away at the family fi-nances," said Bill Moak, President/CEO of the MississippiBBB. "While CARD providesmore consumer protections, cardholders ~ 1 i 1 1 need to keep an eyeon changes to their accounts andrcspond quickly if they aren't satisfied."

Following are just a few of thcncw credit eard regulations andconsumer protections as a resultof the Credit CARD Act:

More notice for interest ratechanges. Card issuers must givean advance notice of 45 dayswhen making interest ratechanges. Additionally, promotional rates must last for at leastsix months and, unless disclosedup- front, card holders cannothave their rate increased in thefirst year,

Cardholder opt-out If there aresignificant changes made to theterms ofthe account, card holderscan choose to rej ect thosechanges and will have five years

to payoff the balance under theoriginal terms,Older age restrictions added.

Card issuers are no longer allowed to issue a credit card toanyone under 21 unless they canprove they have the means to'repay debt or if an adult over 21co-si gns on the account. Creditcard companies also filce new restrictions on how they can promote cards to' college studentsand can no longer offer free giftsas enticements.

New rules for monthly statements. In response to complaintsthat bill due dates were beingmoved up-and leading to increased late fees-monthly statements must now be mailed ordelivered 21 days prior to the duedate. Additionally, card issuerscan no longer set a paymentdeadline before 5 p.m. and cannot charge card holders if theypay online, over the phone or bymail-unless the payment ismade over the phone either onthe due date or the previous day.

Overpayments go toward highest interest balances, I f the cardholder has varied interest rates

.furdifferent services or accounts,any overpayments must be applied to those that are incurringthe highest interest rate,

Over the limit opt-in. Cardholders must opt-in to be able toexceed their credit limit-andsubsequently be charged an ovcrlimit fee by the issuer, If a cardholder chooses not to opt-in, thenhe or she will not be able to exceed their credit limit and incurany resulting fees,

Increased disclosure on minimum payments. Card issuersmust disclose how long it willtake the card holder to payofftheir bill ifthey pay only the minimum monthly payment as wellas how much the they wouldneed to pay every month to payoff the balance in 36 months.

Say goodbye to double-billingcycles. When calculating financecharges, card issuers can nolonger employ twQ:Yc1e or dou6Ie 6Iihng) . a l1ethod that causescardholders to pay interest onpreviously paid balances.

To learn more about the newconsumer protections, Creditcards.com has a comprehensivebreakdown of the CARD Act of2009.

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