President Obama signed the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009. The Act’s main purpose is to prevent credit card industry practices that significantly raise interest rates. There are numerous provisions to this act. Among the provisions are the following:
· There is a provision for granting credit cards to individuals under the age of 21.
· Promotional interest rates must be for at least a minimum of 6 months.
· Credit card companies cannot raise the rates for new customers for at least a year.
· A 45 day notice must be given to customers for rate increases.
· Statements must be mailed within 21 days of the due date.
· Interest rate increases will only be permitted for existing customers who are 60 days late on payments.
More information can be found at the following website:
http://www.govtrack.us/congress/bill.xpd?bill=s111-414&tab=summary