What You Should Know About Credit Card Regulations
Credit card companies — and banks or financial institutions that issue them — make huge amounts of money on interest rate increases, fees and compounding interest on unpaid balances. In today’s economy, many consumers have been victimized by usurious credit card companies preying on the vulnerability of individuals and families who use credit cards to pay for food, tuition, clothing and even medical treatment.
After coming under increased criticism from consumer groups, the government finally enacted new laws regulating what credit card companies can and cannot do.
If I Live In Florida, What Do the Reforms Mean For Me?
Perhaps the most publicized change is what credit card companies must now do regarding information important to consumers. Under the new laws, credit card companies must now do and adhere to the following:
- Post credit card agreements online
- Allow customers to pay bills online or over the phone without incurring a fee
- Consumers must be given a chance to avoid paying an over-the-limit fee
- A 45-day notice and explanation must be provided before an interest rate increase
- Persons under 21 must first prove they can pay off their debt or have a parent or guardian pay it off if they default
- Limitations to the “universal default” practice of increasing a card holder’s interest rate if he or she is late on other bills or misses a payment on his or her credit card
Don’t Cash In Your Savings Or 401(k) — Contact Lewis & Monroe, PLLC Today
If you’re struggling with mounting debt and mortgage payments, filing for bankruptcy may be your best option for saving your home, your pension plan and, ultimately, your credit. Don’t try to transfer balances or call a company promising to negotiate lower interest rates or minimum monthly amounts on credit cards. Many of these services charge you thousands of dollars, while the banks may move to collect on your outstanding balance anyway. And, before you cash out a 401(k) or college savings account, talk to one of our Orlando, Florida, bankruptcy lawyers to discuss the options available for getting out from under your crushing debt.
Learn More About Bankruptcy In Florida
Once you file for bankruptcy, an automatic stay is placed on any collection or foreclosure actions on the part of banks or creditors. Additionally, debt collectors and banks have to quit calling and writing you, and everything must go through your attorney’s office. Put an end to the stress and worry — email the bankruptcy attorneys at Lewis & Monroe, PLLC, today to schedule a free consultation or call 407-917-4147 and learn how we can help you.
We are a debt relief agency. We counsel clients according to federal bankruptcy code.