Major reforms which would prevent credit card companies from retroactively increasing rates or increasing rates in the first year an account is opened, charge misleading late fees or use over-limit fee traps, took effect today. Last spring, President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act making these reforms possible.
In a statement released by the White House, the President said today marked a significant turning point for American consumers.
“For too long, credit card companies have had free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable costs,” President Obama said. “But today, we are shifting the balance of power back to the consumer and we are holding the credit card companies accountable.”
With these new requirements, credit card companies no longer have free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable costs.
What’s next for credit card companies?
See more details of new credit card provisions HERE.
