The Federal Reserve's new rules for credit card companies mean new credit-card protections for you. Your Better Business Bureau wants you to be aware of some key changes beginning Feb. 22.
• Your credit card company must notify you 45 days before it can increase fees and interest rates or make other significant changes to the terms of your card.
• Your monthly credit card bill will include information on how long it will take to pay off the balance if you only make minimum payments. It will also tell you how much you would need to pay each month in order to pay off your balance in three years.
• Your credit card company cannot increase your rate for the first 12 months after you open an account. Exceptions:
— If there is an introductory rate, it must be in place for at least 6 months; after that your rate can revert to the "go-to" rate the company disclosed when you got the card.
— If you are more than 60 days late in paying your bill, your rate can go up.
— If you are in a workout agreement and you don't make your payments as agreed, your rate can go up.
• If your credit card company does raise your interest rate after the first year, the new rate will apply only to new charges you make. If you have a balance, your old interest rate will apply to that balance.
• If your credit card company requires you to pay fees (such as an annual fee or application fee), they cannot total more than 25 percent of the initial credit limit.
• If you are under 21, you will need to show that you are able to make payments, or you will need a cosigner, in order to open a credit card account.
• Your credit card company must mail or deliver your credit card bill at least 21 days before your payment is due. In addition:
— Your due date should be the same date each month.
— The payment cut-off time cannot be earlier than 5 p.m. on the due date.
— If your payment due date is on a weekend or holiday, you will have until the following business day to pay.
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About the BBB
The Better Business Bureau, founded in 1912, is a champion for ethics and trust in the marketplace. Only businesses that meet the high BBB standards are invited to become BBB Accredited Businesses. Today, 128 BBBs across the United States and Canada rate more than 3 million local and national businesses and charities with scores ranging from A to F. Only a BBB Accredited Business may elect to participate in BBBOnLine, one of the most trusted and recognized Internet seal programs in the world.
The BBB serving northern Colorado and Wyoming reported nearly 1 million instances of service to consumers and businesses in 2009. These services include reliability reports on local companies and charities, access to companies that can be trusted by industry, help with dispute resolution, and trustworthy information on consumer and business topics.
Barbara Read, VP Communications Director, 970-488-2035, bread@wynco.bbb.org