- With the passage of the unfair credit card act, notification requirements were established to inform consumers of upcoming changes to their accounts. You must receive 45 days notice of any pending interest rate, fee or finance charge increases. If the card terms change when you renew your card, you must be notified of the changes. Credit card statements must clearly show the next payment due date and any late-payment penalties. The statement must also display your account information, including the amount of time it will take to pay it off and the total interest charged if you only make the minimum payment.
- Since the passage of the unfair credit card act, credit card issuers can no longer make arbitrary rate changes; they must have a valid reason. If your rate is raised for a valid reason, such as late or overdue payments, the issuer must periodically review your account to determine if a rate decrease should be issued. It also requires that promotional offers last six months and prohibits issuers from raising interest rates less than one year from the date of issuance.
In addition, the act prohibits card issuers from charging fees to pay your credit card, unless it's an expedited payment. It also prohibits issuers from charging over-the-limit fees unless you agreed to allow the issuer to complete over-the-limit transactions. Fees for this and any other fees cannot be excessive. Penalty fees must be proportional to the violation. Excessive fees can no longer be charged on low-credit, high-rate cards. - Credit card companies are required, by the unfair credit card act, to apply payments to the first credit card balance with the highest interest rate. It prohibits issuers from giving credit card payments early morning deadlines and it requires issuers to mail billing statements 21 days before the due date instead of 14. In addition, the act prohibits interest charges on debt that's paid current; prohibits late payment fees if the issuer is at fault; requires that payments made at a local bank are credited that day; and requires issuers to consider the card holder's repayment ability before issuing a card or increasing the credit limit.
- The unfair credit card act protected young people by limiting credit card offers and requiring that applicants under 21 have the signature of a parent or guardian as a co-signer, or proof they have the means to pay the bill. Credit card limit increases require the signature of the co-signer as well. It also requires that gift cards retain their value for five years and cannot be charged fees or reduced in value for lack of use.