Chicago, ILL. (Vocus) August 27, 2009
Significant pieces of the new credit card law went into effect this week with hopes of assisting consumers with their credit card debt. As more are sinking into debt, many are looking for a bankruptcy alternative or credit card debt consolidation options. The new laws may help some avoid these steps. CreditCardDebt.org offers a resource for consumers and updates on the latest news.
The two largest changes are the billing notice and the new terms on fees. Credit card companies must now mail cardholders’ bills at least 21 days before a payment is due. The previous law was 14 days. In addition, cardholders will receive 45 days notice on changes in rates or fees occurring rather than the previous 15 days. Many credit card companies have already begun the process of notification.
A second major change is that cardholders do not need to accept the new terms issued by credit card companies. When a cardholder receives notice about increased rates or fees, they can reject them. However, this comes with stipulations. The cardholder must no longer use the card and the balance must be paid back at the old rates with in five years.
If the balance is not paid back in the given time frame, many additional fees may be added to the card. Before deciding to reject the fees or rates, a cardholder should fully understand the specific terms. By rejecting the changes and setting up a feasible repayment plan, possibly through a credit card debt consolidation plan, this can be a viable option as a bankruptcy alternative.
CreditCardDebt.org is a resource center dedicated to helping people with their credit card debt. The site offers debt information, a glossary of terms, a credit card debt calculator, information on latest news and reforms, an advocacy center and additional resources to help consumers find their way out of debt. CreditCardDebt.org is committed to helping people regain control of their financial life. To learn more about CreditCardDebt.org, visit the website.