Wednesday, February 10, 2010

Know the New Credit Card Law when buying ink or toner cartridges with Credit Cards

Do you use your credit card in purchasing ink or toner cartridges online? You should know about the new credit card law - CARD Act of 2009. Moreso because it affects your entire credit account. The new law has been signed by President Obama last year and will take effect on February 22, 2010.

Here are some provisions of the new credit card law that can affect your card-zipping habits soon.

  • The credit card issuer can raise the Annual Percentage Rate (APR) only if the credit card holder doesn't make the minimum monthly payment within 60 days of payment due date. They (credit card issuer) are also mandated to give credit card holders at least 45 days prior notice of any rate increase. The card holder can opt out of the rate increase. He/she can pay off the balance at the prior rate but have to close the account which the credit card issuer can ask for account termination fees.

  • The credit card issuer should obtain the card holder's permission to process over-the-limit transactions.

  • Credit card issuers are mandated to give card holders reasonable time to make payments on monthly bills at least 21 days after the bills are delivered. Arbitrary deadlines will be illegal. Late fees can not be imposed upon payments not made because the due date falls on weekends, holidays or when the card issuer is closed for business.

  • Credit card issuers are mandated that higher interest balance paid first. This is applicable to card holders having two balances of different APR. Any amount paid by the card holder in excess of the minimum payment due will used to pay the balance with the higher APR.

  • Credit card issuers are not allowed to issue credit cards to anyone under 21 years of age without an adult co-signer or a proof of income to pay the card debt.

  • Credit card issuers are required to display a toll free number of at least three consumer credit counseling agencies approved by the US banckruptcy courts for credit and debt management counseling.

Remember that these are just some of the provisions of the new law and it is not only applicable to buying say, for example, canon toner or ink cartridges but to the general use of your credit card. You ought to consult legal authorities or the company that issued the credit card to you about the implications of this new law to your credit card account. This post is for informational and awareness only.

As always, it is wise to pay in cash. For those necessary times that you need to use your credit card, ensure to pay your bills on time. Actually, it is good advice to pay more than the minimum payment due. Never ignore notices and mails coming from your credit card issuer because it might contain changes to your account.

Happy ink & toner buying with your credit card! Under the new credit card law.





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