Credit Card Offers

The third and final phase of the Credit Card Act of 2009 went into effect yesterday, on Aug. 22. And while most of the provisions went into effect in February of this year, the remaining provisions include some pretty significant changes that you should know about.

To help explain what these final changes mean for you, Adam Levin, chairman and founder of Credit.com, was invited to appear yesterday on ABC’s Good Morning America. Watch the clip to hear more about the final changes pertaining to credit card fees, the new 6-month interest rate review mandate and new gift card rules that went into effect yesterday:

Fee Changes:

• Credit card issuers cannot charge you an inactivity fee for not using your card, including fees for not charging a certain amount each month.
• Credit card issuers cannot charge you a late fee greater than your minimum payment.

Interest Rate Reviews:

• If your rate was increased because of late payments, you must be given the opportunity to earn back your previous rate. By paying your account on time for six consecutive months, your credit card issuer must lower your interest rate back to the rate it was before the increase.

• If your rate was increased after January 1, 2009 for any reason, beginning in February 2011, your card issuer must review your account every six months to determine whether the reasons behind the rate increase still apply. If not, they must reduce the rate, though there is no specific amount by which it must be lowered.

Gift Card Changes:

• Gift cards, prepaid cards and gift certificates cannot expire within five years of activation, unless the terms and expiration are clearly disclosed before it’s purchased. If you load additional funds onto a card, the five year expiration period is extended by five years.

Thanks to the CARD Act, consumers are no longer solely at the mercy of their credit card issuer’s whims. If you’d like more information on the CARD Act and want to know what changes you’ll see with each provision, be sure to check out Credit.com’s Consumer Guide: How the Credit CARD Act of 2009 Affects You.

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