Discuss the major provisions of the Credit CARD Act
The major provisions of the Credit CARD Act are:
Due dates:
- Must be disclosed
- Must be set for the same time each month and occur at the end of a business day
- Bill must be mailed at least 21 days ahead of time
?
Increases in rates and fees:
- Are not allowed on any charges already incurred (until a cardholder has missed two consecutive payments)
- Are only permitted for future purchases if credit card company provides 45 days' notice to the consumer and permits cancellation of the card
Late payment fees are limited to $25 for first event and $35 thereafter.
?
Payment must be applied to whichever debt on the card has the highest interest rate (say, a cash advance rather than a new purchase).
?
Consumers have the right to set a fixed credit limit. Consumers cannot be charged a fee if the company accepts charges above that limit unless the consumer has agreed to the fee. Only one overlimit fee per statement is permitted.
People under 21 cannot obtain a credit card unless they have income or a co-signer
You might also like to view...
A post-closing trial balance should be prepared before the financial statements are prepared
Indicate whether the statement is true or false
Provide an example of a service that lies at each end of the tangible-dominant to intangible-dominant spectrum
What will be an ideal response?
Which of the following correctly pairs a product with the stage in its life cycle?
a. checkbooks: growth b. credit cards: maturity c. 3-D televisions: obsolescence d. smart cards: decline
The case that involved two ships both of which were named "Peerless" is:
A) Fisher v. Bell. B) Konic International Corp. v. Spokane Computer Services, Inc. C) Lucy v. Zehmer. D) Wilson v. Western National Life Insurance Co. E) Raffles v. Wichelhaus.