SENATE BILL
Takes effect nine months after enactment, except for requirement of notice before interest rates are increased, which goes into effect in 90 days.
-- Includes unrelated provision that would allow people to carry loaded guns in national parks and wildlife refuges.
-- Bans double-cycle billing, which eliminates the interest-free period for consumers who move from paying the full balance monthly to carrying a balance.
-- Prohibits retroactive rate increases unless the cardholder is at least 60 days behind in paying the bill. If a person does fall behind and the rate on past buys is increased, lenders must restore the lower rate after six months if the cardholder has paid monthly bills on time.
-- Requires lenders to post their credit card agreements on the Internet.
-- Requires that customers receive 45 days notice before rates are increased.
-- Requires anyone under 21 to prove that they can repay the money before being given a card, or have a parent or guardian promise to pay off their debt if they default.
-- Prohibits over-the-limit fees unless a cardholder elects to be allowed to go over a limit.
-- Requires lenders to say how much time it would take and how much money in interest would be paid if only the minimum monthly payments are made.
--Requires that gift cards remain valid for five years.
--Bans "pay-to-pay" fees, which are charged when someone pays the bill by phone or on the Internet.
FEDERAL RESERVE REGULATIONS
Take effect in July 2010.
-- Require banks to give customers a reasonable time, such as 21 days, to pay the bill before it is considered late.
-- Require banks to give customers 45 days notice before raising interest rates on new purchases, even if the customer is late or delinquent in paying the account.
-- Prohibit, in most cases, retroactive rate increases. Does not include a provision that would require lenders to reduce the rate after six months if the person pays on time.
-- Prohibit double-cycle billing.
-- Limit excessive fees charged on subprime credit cards, which are marketed to people with bad credit.







You must login to comment.