Credit and Bankruptcy Law


Didn’t the U.S. Congress just pass a new law on credit cards?

Yes, Congress passed, and President Barack Obama signed into law, the Credit Card Act of 2009, which is designed to curb abuses in the credit industry and protect consumers. The new law requires credit card companies to give consumers 45 days advance notice about interest rate increases. It also requires consumers to apply payments to the highest-interest rate balances first before applying the payment to a lower-interest rate, balance-interest-free loan.

The new law also requires consumers to “opt-in” in order to be able to make charges that exceed your credit card limit. This change will enable consumers to learn when they are approaching their credit limits.

Medical bills, credit cards, school loans and more have increasingly burdened American consumers. If you can only manage paying the minimum on your bills, or not even that much, you may have a serious debt problem (iStock).

This is a web preview of the "The Handy Law Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App