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Credit cards are an easy form of payment and they can act as an immediate loan. Credit cards, like other loans, must be repaid. Consumers have specific rights in regard to credit cards. Some of these concern due dates and interest rates. In Illinois, as with many other states, specific laws have been put into effect to protect consumers against unscrupulous creditors. - Credit cards are obtained via legal contracts and the debt must be repaid. Even though card holders sign contracts, debtors have rights and protections. To protect themselves, they should know the cost of the debt before signing. Illinois has mandated that interest fees be printed for consumers and they may opt-out of purchasing credit from a vendor. If a store or company offers credit, the consumer may choose to obtain credit elsewhere instead of the card offered.
- The Credit Card Reform Act of 2009 (also known as the CARD Act) is considered a significant piece of legislation to protect consumers. The confines of the law prohibit double-cycle billing, the changing of due dates without advance notice, removal of burdensome fines levied on card holders and prevention of rapidly- increasing interest rates. Under the law, credit card companies cannot increase the interest rate of a card less than 12 months old. They can not increase the interest rates of cards more than 60 days delinquent and promotional periods must last for six months. Forty-five days notice is required to increase an interest rate. As for late payments, credit card companies can no longer add late fees for arbitrary cut-off times and due dates falling on holidays or non-business days. Late fees and over-the-limit fees must also be proportionate to the amount owed.
- In Illinois, companies can only sue for debts that are less than five years old. Any debts older than five years are considered aged debts. If a company contacts a consumer about an old debt, the consumer should ask for verification. Though, if payments have been made on an account, the clock re-starts. So the time-limit for unpaid accounts in Illinois is from the date of last payment.
