Wednesday, June 10, 2009
Tips For Seeking The Best Credit Cards As New Rules Finalized
A new credit card reform law passed this month has some consumers wondering if they're carrying the best credit card in their wallet.
New protections for consumers from abusive credit card practices became law after President Barack Obama on May 22 signed H.R. 627, the Credit Card Accountability, Responsibility and Disclosure Act of 2009.
The bill will prevent lenders from such things as making arbitrary changes to the interest rates and terms associated with a card that holds an existing balance.
Matt Dodds, Dupaco Community Credit Union Senior Vice President of Consumer Lending, offers some consumer insights on the new law's provisions, which generally are effective in nine months.
Provisions of the new U.S. credit card law would, in part:
In the meantime, to ensure they are carrying the best credit card in their wallet, Dodds advises consumers to:
Dodds anticipates no immediate changes to Dupaco's credit card program, but says the credit union continues to review the rules. He says some portions of the new law could "have the unintended consequence of raising compliance costs and making credit more expensive and less available to consumers."
"The bottom line is that as a not-for-profit member owned financial cooperative, Dupaco is committed to providing our members the most cost-effective credit card program possible," he says.
"There may not be fancy gimmicks, but when you do business at the credit union, you know what you are going to get," says Dodds.
For more information, check these federal government websites:
Choosing A Credit Card: The Deal is in the Disclosures (Federal Trade Commission) http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre05.shtm
Choosing a Credit Card (Federal Reserve Board) http://www.federalreserve.gov/pubs/shop
File a complaint about abusive financial service practices (Federal Reserve Board) http://federalreserveconsumerhelp.gov