What is Credit Card Act of 2009?
The Credit Card Act of 2009 is a law enacted by the United States government that regulates the credit card industry. This act applies to all credit cards that are issued in the U.S., including those issued in Montana. The main goal of this law is to protect consumers from predatory practices and unjust fees by credit card companies. The Credit Card Act of 2009 prohibits certain practices that were common before the law was enacted. These practices include unfair interest rate hikes, a lack of transparency in fees, and double-cycle billing. Additionally, the law requires credit card companies to provide 45 days of notice to cardholders if they plan to increase interest rates, and requires those rates to be fixed for at least a year after an increase. The law also protects young consumers by prohibiting companies from issuing credit cards to those under the age of 21. Additionally, the law mandates that companies provide young adults with educational resources before approving their card, and that their parents or guardians must co-sign for any credit card issued to someone under 21. Overall, the Credit Card Act of 2009 has created an environment which more easily allows Montana residents to understand the terms and fees associated with their credit cards. These provisions are meant to help protect consumers from deceptive practices and help limit the power that credit card companies have over their customers.
Related FAQs
What are the advantages and disadvantages of using a prepaid credit card?How do I determine the credit limit for my credit card?
What should I do if I spot an error on my credit report?
What is the best type of credit card for me?
Is there a limit on the amount of fees a credit card company can charge?
What is the difference between a credit card and a debit card?
What is a balance transfer?
What are the different types of fraud protection programs?
What is the average APR on credit cards?
Can I use a credit card to pay bills?
Related Blog Posts
The Basics of Credit Card Law: What You Need to Know - July 31, 2023The Pros and Cons of Credit Card Use - August 7, 2023
What Is the CARD Act and How Does It Impact You? - August 14, 2023
5 Tips for Understanding Credit Card Law - August 21, 2023
Understanding the FDCPA and Its Impact on Credit Card Law - August 28, 2023