Credit Card Act worries consumers, poll shows.A recent poll conducted on CardRatings.com, a consumer education site, found that the Credit Card Accountability, Responsibility & Disclosure Act has many people worried. About 80 percent of poll respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. believe the new legislation will lead to higher interest rates for both current and future cardholders--something that is already occurring. "Credit card rates have been rising as of late, and the two new provisions of the Credit Card Accountability, Responsibility and Disclosure Act that go into effect this month will likely result in unintended negative consequences for consumers," said Curtis Arnold Curtis Arnold, consumer educator and advocate, is the founder of U.S. Citizens for Fair Credit Card Terms, Inc. (CFCCT). CFCCT hosts the consumer information site CardRatings.com. Arnold has been educating consumers about credit cards since 1998. , founder and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CardRatings. com in North Little Rock. "I predict that average rates for credit cards will reach 15 percent by early next year." The CARD Act seeks to protect consumers from card-issuer practices deemed unfair by many. The bulk of the bill aims to guard against retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a rate increases, short-notice rate hikes and quick payment requirements. Although most of the act won't won't Contraction of will not. won't will not won't will roll out until February 2010, two key provisions took effect last week: Credit card companies will be required to mail bills at least 21 days before payment is due, instead of the 14-day period that has become the industry norm. Card issuers must give 45 days' notice before raising interest rates or changing a card's terms significantly. However, no notice is required for variable-rate Variable-rate A varible-rate agreement, as distinguished from a fixed-rate agreement, calls for an interest rate that may fluctuate over the life of the loan. The rate is often tied to an index that reflects changes in market rates of interest. cards with increasing benchmark rates. |
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