Review of Bill ‘filler’ could mean new credit card terms
By Allison Roberts on Tuesday, November 6th, 2007 :: 3:41 pmCategory: Reviews
In her article, published in The Dallas Morning News on Monday, Nov. 5, 2007, Pamela Yip examines how credit card companies notify their customers of changes to the terms of their contracts.
Credit card debt plagues many Americans, and customers’ efforts to recoup from debt, late fees and finance charges are thwarted when the terms of the contract are constantly in flux.
Yip says that most cardholders do not thoroughly read their monthly invoices to check for term changes, “but, everyone should, especially now, with holiday shopping season looming.”
Yip quotes Bill Hardekopf, chief executive of LowCards.com, who says he often finds many new fees and subtle adjustments in the fine print and in envelope stuffers.
By law, credit card companies are only required to give you 15 days’ notice prior to changing the terms, fees and interest rate increases. However, the law is not specific in how the company must notify you. So, Yip says it is imperative to read the terms and conditions of your credit account regularly so that you are aware of any changes.
Knowing the terms of your credit card agreement will put you a step ahead for the holiday shopping season. Many people pay for presents with credit cards, so it is essential that you know your interest rate and possible fees for the large balance you’re likely to have come January.
Yip goes on to explain the dangers of current practices and changes that the Fed has proposed. She explains the suggested changes as follows:
- Disclosures accompanying credit card applications and solicitations would highlight fees and the reasons penalty rates might be applied, such as for paying late.
- Creditors would be required to summarize key terms when consumers open an account and when terms are changed.
- Periodic statements would break out costs for interest and fees.
- The regulation would expand the circumstances under which consumers receive written notice of changes in account terms, including requiring an advance notice before a penalty is imposed.
If all of your cards are already maxed out, and you are consumed with credit card debt; then it is time to reorganize your finances. Credit card debt relief programs such as debt consolidation and debt settlement can help you out of debt. Speak with a Credit Solutions debt expert today.
Author Bio: Allison Roberts is a graduate of the University of North Texas Department of Journalism. She has experience in agency and in freelance public relations. Allison currently writes for Credit Solutions and she is completing an unfinished work of her late grandfather. For more articles by Allison on bankruptcy and visit Credit Solutions.
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