The New Credit Card Debt Law - Understand Your Rights For Successful Debt Negotiation

By Author: J.J. Yong
Total Articles: 962
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Are you aware of the new credit card debt law which has been enforced since 22nd February 2010? There are some key changes on the rules and many financial experts commented that the changes of rules are actually great opportunities for credit card holders who are knee deep in debt.

From now onwards, under the new regulations, for those credit card companies which intend to increase certain fees, it is compulsory for them to give their clients the option to cancel their cards before the new fees are applied. If the cardholders refuse to continue using the cards, the providers have the right to increase their monthly payments but subject to certain limitations. You need to bear this point in mind so that you will not be 'forced" to accept new fees. You have the right to terminate your card.

You will be able to see additional information on your credit card bills after the new law is enforced. It is a must for the credit card companies to include the information about the duration of the debt repayment to the cardholders. In other words, if the cardholders only make minimum payment every month, they will be able ...
... to know the duration required for them to clear off all their debts through their bills. They don't need to call up the providers to find out anymore.

The new law is good at protecting NEW cardholders who have just applied for the cards. During economy downturn, the credit card companies are not allowed to increase the interest rates for all newly opened accounts for the first 12 months. This will enable the new cardholders to enjoy lower interest for the first year. However, if you are offered the introductory rate, you need to wait for another 6 months before the new rate takes effect.

With the amended rules, you are given the freedom not to opt for over-the-limit transactions. If you don't choose to have this facility, the card providers are not allowed to charge any over-the-limit fee on you if they 'accidentally" approve your transaction. Hence, you are reminded to go through your monthly bills carefully to avoid unnecessary fees.

Seriously speaking, credit card debt is burdening. The new law helps to reduce the financial burden, especially for those cardholders who pay more than the minimum payment every month. The creditors are required to apply the excess amount to the balance with the highest interest rate. If you pay more every month, you can become debt free fast.

To sum up, the new law is meant to assist all the Americans who are knee deep in debt. You need to be smart and make full use of your rights to get rid of your debt in a legal way.
For more information about the new credit card debt law and credit card debt negotiation, visit CreditCardDebtSolver.com.