Legal Rights of a Credit Card Holder
If you are facing problems with your credit card company, it is time to find a solution. As a consumer, you have certain rights and privileges. The Credit Card Accountability, Responsibility and Disclosure Act (2009) aim at protecting consumers from unfair practices of such companies.
If you are yet to understand whether this law applies to your case, get in touch with a consumer attorney in Florida. What are the basic rights that you get as a consumer? Here are the provisions that affect you the most. If you still have any queries, you need to get in touch with an attorney to find specific answers.
The banning of the -universal default clause’ means no more increase in the interest rate for missing a payment to any other creditor. Initially, the credit card company could increase your interest rate if you missed paying any other debt – a mortgage payment, or a car loan, or even a utility bill.
The company may increase this rate if your payment is due for 60 days or more. However, if you pay your bills on time for the next six billing cycles, the company must terminate this increase.
The Act also makes it necessary to charge a late fee proportional and reasonable to the violation. It cannot exceed the amount of violation in question. Moreover, your credit card company cannot charge you above $25 for the first violation and above $35 for any repeat ones in six billing cycles, except when the cost incurred is higher.
As per another provision of this Act, the company does not have the right to change the due date from one month to another or arbitrarily cutoff time on this date. In addition, they must deliver the statement at least 21 days in advance of the due date.
According to the new payment allocation rule, the credit card company must apply any payment, which is above the min8mum, to the balance using the highest interest rate first. Next, it may apply it to the balance with the next highest rate, and continue until the exhaustion of the payment.
If you suspect a violation of any of these rights, you need to find a Florida Consumer Attorney immediately. Only qualified and experienced legal practitioners are capable of giving you proper answers and handling such matters. They would know how to negotiate with your credit card company, and if this fails, how to file a complaint.
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