There are so many credit cards. You can have a card to fill up his tank. You can have another card to buy groceries and another card to buy plane tickets. This new bill that will be enacted effective 9 months after signing will help consumer in many ways and one of them are in the event of going over the limit. Your interest rate will not be raised. Title I tells us that companies now need to give notice 45 days prior of any changes. In section 101 in H.R. 627 states, "Advanced notice of other significant changes required. In the case of any credit card account under an open end consumer credit plan, a creditor shall provide a written notice of any significant change..." There is a common thread throughout Title I and that thread is depended upon notification, accountability and agreement to notify and be held accountable. In section 102, it says that no creditor may increase annual percentage rates, fees, or finance charges. The exceptions can be summed up by who controls the time and money. With all the provisions and exceptions in Title I that covers the issue of consumers. This bill provides the best "insurance" for you the consumer. Also, the exceptions are not loopholes that creditors can capitalize on. Title II goes into the Enhanced provisions. By all means follow the link to bill H.R. 627.
Every welcome week, Octoberfest, Fall Fest, May Daze or any other event college campuses offer have credit card companies or banks that push the credit card option at the event. This bill requires a minimum age of 21. Under the age of 21, you have to provide proof you are able to make the payments or have a parent co-sign. Also, for the students that receive a credit card should have education or counseling offered. Offered does not mean mandatory. Every college student should be responsible for their purchases. In summary of Title III, the Credit CARD Act of 2009 provides more accountability and prevention. Some, not all, college students ha ve federal or private loans to pay for education. This bill hopefully encourages college students make wiser decisions.
Some would say that small businesses are the backbone of this economy. I have heard that quote before from conservative individuals. If that is the case, this bill is inadequate and provides provisions that suggest further review so that small business can be impacted positively like average consumers. The further review includes making the small business credit cards agreements adequate for a small business, the cost and availability for non-prime borrows (Title V, Section 506.a.1.4). Even though I found this bill to be inadequate I have a bright hope for the future.
In conclusion, the consumers have enhanced protections that will aid consumers to spend more responsibly. The idea of spending responsibly still means spending. Hopefully, the responsibly means taking appropriate measure to pay on time or early and downsizing to use the credit card in the event of emergencies so your cash flow is not halted. The coll ege student may just have student loan upon graduation which is already enough especially at the current state of the economy. Last, the small business may have provisions to make it easier for credit. Even though, the stimulus is suppose to make credit readily available. This Credit CARD Act of 2009 has added further provisions that might make our backbone stronger assuming small businesses are our backbone.
If you read this and you are a consumer like myself and have bad credit. I should say had because I did make poor decisions but the best decisions was to do research on how to get my credit back successfully with help of course. then you understand depending on your FICA score the high rates or good rates. If you like your interest rates, I think this new Act will make them better.
Lonzo S - Passionate About Politics And People And Hope To Bring That In An Understandable Way.
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