On Monday, August 23rd, 2010 another series of credit card laws were signed into law by President Obama. The new regulations are aimed at protecting delinquent borrowers. The new regulations include the following major changes:
• The ban on fees for inactive cards;
• $25.00 cap on late payments;
• An explanation of rate increases – if your annual percentage rate (APR) goes up, you must be told why;
• Your credit card company must re-evaluate interest rate increases it makes every six months. If it’s appropriate, your credit card company must lower your interest rates within 45 days of completing an evaluation.
It has been argued that banks, in effort to maintain profit have been steadily raising interest rates over the past year in response to the series of credit card regulations. The average interest rate is now 14.7 percent. A year ago it was just above 13 percent. Due to the economy, households have less disposable income, the increase in interest rates will most likely lead to more consumers exploring their options in Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy.
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 Lawyers at Sadek Law Offices, LLC at 215-545-0008 or toll free at 215-545-0008 or email brad@sadeklaw.com. Thank you.