Tennessee residents who have a credit card are likely aware of the risks that come with it. Credit cards, when used or monitored improperly or recklessly, can easily lead to consumer debt. This is why the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 was established. But just what does this act accomplish?
Creditcards.com states that the Credit CARD Act changed the practices of those who issued credit cards to consumers, offering more consumer protection to people who used and owned credit cards. For example, anyone who is under the age of 21 needs to have a co-signer in order to get a credit card now. There is also much more transparency about the times and due dates involved in bill pay, so you don’t accidentally miss a payment due to unclear terms.
A big issue before the Credit CARD Act was the rampant charging of over-limit fees, late fee restrictions, and hikes in interest rate. This act introduced necessary caps, disallowing credit card distributors to charge over a certain amount for fees and interest rates.
Transparency was also a big issue that this act addressed. Many changes were made, such as making it so that companies had to disclose their minimum payments. This not only includes the consequences of only paying the monthly minimum, but also information on how long it would take a debt to be paid off over a period of 36 months if only the minimum is met.
These changes helped to shift the scene of credit cards, making it easier for you to navigate and avoid debt. However, some companies may still try to get around these legal necessities. If you find yourself in that situation, you may wish to seek the aid of a legal professional.