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Finally, consumers of credit card services are getting some protection. The New Credit Card Act goes into effect this year, so you may be getting some very good news from your credit card company this month. Here are some of the changes that are good for you.
As of February 2010, credit card companies can not raise the rates on your balance when you are late with payments. Now, you must be at least 60 days late before your rates may be increased. The company also will have to lower your rate back downward to the original rate if you then pay on time for 6 months consecutively.
It used to be people had 30 days from the time of receiving their bill to pay it. We have lost those 30 days over the years. The New Credit Card Act guarantees that consumers have at least 21 days for a graced period.
Late fees (and rate increases) can only be imposed now if the due date is the same each month, and if the company receives the payment on a non-business day, it can not define the payment as late.
Credit card companies were able to impose a rate change with a 15-day notice. You are now entitled to at least a 45-day notice. Such notice can accompany your statement, so look closely.
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