March 4th, 2010 by Gerri Guzman, Executive Director
The Credit Card Bill of Rights (or the CARD Act) designed to protect credit card holders went into effect in February. If you have a credit card, these new rules may impact you. Some of the highlights include:
- Card issuers must consider the borrower’s ability to repay before issuing the card.
- Statements must be sent no less than 21 days before the due date.
- Cardholders are given 45 days notice before their interest rate is increased or any other major changes are made.
- Interest rates cannot be raised on existing balances unless the cardholder is 60 days late in payment.
- After a rate increase, if the cardholder pays on time for 6 months, the original rate must be restored by the company.
- Payments received by 5:00 pm on the due date will be considered on-time.
- Interest rates cannot be increased within the first 12 months of an account, and promotional rates must last for at least 6 months.
- Over credit limit fees are now prohibited unless agreed upon by the cardholder.
- Cardholders will be given clear disclosure on how long it will take to pay off a balance if minimum payments are made.
- They will also be told the total interest costs if making minimum payments.
- No double-billing cycles.
- No fees related to the method of payment (mail, phone, electronic transfer, etc).
- Card issuers are prohibited from giving cards to people under the age of 21 unless they can prove they have the means to repay the debt, or a parent or guardian co-signs.
Let me know if you have any questions about these new rules by posting a comment to this blog or sending me an email. I’ll do my best to get you answers as soon as possible.
Tags: CARD Act, Credit Card Bill of Rights, credit cards
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February 18th, 2010 by Gerri Guzman, Executive Director
As I watch a White House concert honoring the music of the Civil Rights Movement, I am reminded of the stories I have heard from Consumer Rights Coalition members who feel they have been shut out our financial system.
The basic principles of the Civil Rights Movement are full inclusion and equal opportunity for all. Under these principles, we should all have access to financial services that allow us to provide for our families and maintain our households. For some this is the first step towards the American Dream; for others it simply allows us to remain independent and maintain our modest lifestyles with dignity.
Thomas Jefferson said, “That government is best which governs least.” When dealing with economic regulation, the same should apply. Americans deserve real choices and access to a variety of financial services when deciding how to make ends meet or handle an unexpected emergency. Government regulation should protect the public interest without eliminating or limiting the financial service options available to hard working Americans.
Now, much like the time of the Civil Rights Movement, participation and involvement in our legislative system is critical. We need to speak out to ensure everyone has opportunities for growth and self sustainability so that we cannot only survive, but prosper.
Tags: Economic Justice, financial choices, Financial Regulations, Financial Services
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February 1st, 2010 by Gerri Guzman, Executive Director
In the 22 years that I owned and operated a beauty salon and supply store, the 12 hour days often grew tiring. But I never grew weary of the stories my clients shared during their visits or the stories I heard from constituents and neighbors when I was later elected to serve as the local City Treasurer and School Board Member.
The same life experiences are shared when community members and parents gather at their children’s schools and sporting events, townhall meetings, or when grabbing their morning coffee. These stories are always similar – the daily struggles that families go through to get ahead and to achieve the American Dream.
The American Dream to each family is as different as the road taken to attain it. To some it may mean providing a college education for their children; to others homeownership or owning a small family business. In these economic times, it often means having a job to go to in order to put food on the table or take your family to an occasional movie.
I can tell you none of these dreams come without struggle, sacrifice and hard work. And it goes without saying that everything about the “American Dream” is about having opportunity and financial resources.
I am convinced that after years of hearing individual stories from my clients and community members and now from the CRC consumers that it is vital that we all have a variety of financial choices and options. As American consumers we know best what works for our own family households.
In a perfect world, the U.S. banking establishment would open its doors to all, providing products, services and opportunities that accommodate all types of incomes and fiscal limitations. But in the absence of that perfect world, all Americans need responsible and affordable financial choices that help them reach their financial goals.
After all it is called the “American Dream”.
What is your dream?
Tags: American dream, financial choices, financial decisions, financial resources, opportunity
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