First Phase of New Credit Card Law Takes Effect Today
The first part of the Credit Card Accountability Responsibility and Disclosure Act of 2009 takes effect today. Under the new law:
- Issuers must give 45 days of warning before rate or fee increases, instead of 15 days
- Statements must be mailed 21 days in advance of the bill’s due date, instead of 14
- Banks must also give consumers the choice of opting out of rate increases by canceling their accounts and paying off their existing balances at the old, lower rate.
The remaining provisions are set to become effective next year.