Credit Card Accountability, Responsibility and Disclosure Act (“CARD”)

This post will serve as a follow-up to the August 21, 2009 post regarding new CARD laws.  On February 22, 2010 the next wave of CARD laws go into effect.  The new enactments focus on credit card laws and regulations to improve consumer awareness and financial management.  The four (4) principal changes going into effect on February 22, 2010 are as follows:

1.) Payment Crediting: Generally, payments above the minimum payment due will be applied first to higher interest rate balances and then to lower rates balances.  This may help in reducing interest when one holds several credit cards with a single lending institution.

2.) The payment due date will be set a minimum of 21 days following the close of each billing cycle.  This will give the cardholder more time to budget and pay the credit card balances.  Interest on past debt will continue to accrue during the 21 day grace period and therefore make it increasingly difficult for one to pay their debt and may need to consider a Chapter 7 Bankruptcy filing or a Chapter 13 Bankruptcy filing.

3.) Penalty APR: If a minimum payment is not received within 60 daysof the due date, the Penalty APR will affect all otstanding balances and future transactions.

4.) Overlimit Fee: You will not be charged a fee for spending over your credit card limit unless you agree for the credit card company to do so.

Although these new laws are designed to be in the consumer’s favor, however, credit card debt will still remain a very large and unaffordable expense for most households.  For an understanding how these new laws will affect your circumstance, please contact Sadek Law Offices, LLC.

If there are any general questions or topics you would like to read about relating to bankruptcy law in the Philadelphia, Pennsylvania region, you may contact the Philadelphia Bankruptcy Lawyersat Sadek Law Offices, LLC at 215-545-0008  or (877) 4-LAW-411 or email brad@sadek-cooper-site. Thank you.

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