New Credit Card Rules Popular with NJCU Community
By: Komal Zafar and Danielle Church
Issue date: 12/15/09 Section: News
- Preserves the ability to pay off on old terms
- Places limits on fees and penalty interest-If the payment is not received within 60 days after the due date, the interest rate will go back to the original rate if the consumer has been paying on time for the last six months, no over-the-limit fees unless the consumer has asked for an account to be set up that way, penalty fees, such as late fee or over-the-limit fee, must be reasonable and proportional to the omission and violation, and two-cycle billing is prohibited.
- Requires issuers to consider consumer's ability to pay
- Requires fair application of payments
- Provides sensible due dates and time to pay
- Protects young consumers under the age of 21
- Prevents deceptive marketing of credit reports
- Restricts issuance fees on fee harvester cards
- Requires enhanced disclosures
- Establishes gift cards protection
"I feel that finally Congress has proposed concrete reforms that are in the interest of the consumer. For so long, credit card companies and banks have given the excuse for flexibility and innovation to provide services for their customers," said Demetrios Kapetanakos a full-time professor of the English Department.
"Yet, they use every trick in the book to squeeze out pennies that would benefit their bottom line. Members of Congress are finally looking out for those who have voted them into the office rather than those that have made donations to their campaigns."
Stephanie Gonzalez, 22, a Psychology major from West New York said that the legislation is a great idea and keeps everyone updated. She mentioned that the legislation would help maintain good credit scores for consumers since the legislation places limits on late fees.
The NJCU community also took into consideration the legislature's attempt to protect young consumers.
Unlike its predecessor, the Credit Cardholders Bill of Rights Act of 2008, which limited special protection to consumers under the age of 18, the new legislation would grant special protections to consumers under the age of 21.
- Places limits on fees and penalty interest-If the payment is not received within 60 days after the due date, the interest rate will go back to the original rate if the consumer has been paying on time for the last six months, no over-the-limit fees unless the consumer has asked for an account to be set up that way, penalty fees, such as late fee or over-the-limit fee, must be reasonable and proportional to the omission and violation, and two-cycle billing is prohibited.
- Requires issuers to consider consumer's ability to pay
- Requires fair application of payments
- Provides sensible due dates and time to pay
- Protects young consumers under the age of 21
- Prevents deceptive marketing of credit reports
- Restricts issuance fees on fee harvester cards
- Requires enhanced disclosures
- Establishes gift cards protection
"I feel that finally Congress has proposed concrete reforms that are in the interest of the consumer. For so long, credit card companies and banks have given the excuse for flexibility and innovation to provide services for their customers," said Demetrios Kapetanakos a full-time professor of the English Department.
"Yet, they use every trick in the book to squeeze out pennies that would benefit their bottom line. Members of Congress are finally looking out for those who have voted them into the office rather than those that have made donations to their campaigns."
Stephanie Gonzalez, 22, a Psychology major from West New York said that the legislation is a great idea and keeps everyone updated. She mentioned that the legislation would help maintain good credit scores for consumers since the legislation places limits on late fees.
The NJCU community also took into consideration the legislature's attempt to protect young consumers.
Unlike its predecessor, the Credit Cardholders Bill of Rights Act of 2008, which limited special protection to consumers under the age of 18, the new legislation would grant special protections to consumers under the age of 21.
Be the first to comment on this story