What is a credit card agreement?
A Credit Card Agreement is a contract between a credit card issuer and a cardholder. It outlines the terms of use and the rules for using a credit card. It is important for both parties to read and understand the agreement in order to make sure each has a full understanding of their rights and responsibilities. In the state of Georgia, the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 requires credit card issuers to provide a copy of the cardholder agreement when the account is opened. This agreement will include information about the account, including the interest rate, fees, and billing practices related to the card. The agreement will also include an explanation of the cardholder’s responsibility to make payments on time and the penalties for late payments. For example, if the cardholder does not make their minimum payment by the due date, the card issuer is legally allowed to charge them a late payment fee. The agreement should also state that the cardholder is responsible for any fraudulent charges made on their card. If the cardholder finds a charge on their statement that they do not recognize, they may dispute the charge and the issuer may investigate. In summary, a Credit Card Agreement is a contract between a credit card issuer and a cardholder. It outlines the terms of use and the rules for using a credit card and includes information about the account, interest rates, fees, and billing practices. It also explains the cardholder’s responsibility for making payments on time and outlines the penalties for late payments.
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