Is there a new law for protection of credit card members? Yes, The Credit Card Accountability, Responsibility and Disclosure Act of 2009 (also known as the Credit CARD Act) for credit card companies will result in new credit card policies and protections for you. Effective February 22, 2010 there will be new rules for rates, fees, and payment due dates. The new law also provides protections for consumers under age 21.

The Federal Reserve has prepared a brochure titled: What You Need To Know: New Credit Card Rules, that highlights the key changes.

You can view and print the pamphlet at the following link:
http://www.federalreserve.gov/consumerinfo/wyntk/creditcardrules.htm


I was receiving my monthly credit card statement, but now I am not. What can I do? Notify your credit card company that you are not receiving your monthly statements. You should also file a written billing error dispute with the bank. Send this to the address specified after "Send Billing Inquiries to:" on the statement. This address is usually different from where you send your payment.

File your dispute within 60 days of the date you should have received your statement. If you are waiting for your statements to arrive before making your payments, then you could be incurring late fees or interest charges.

Please note there are some times when a card issuer is not required to send you a periodic statement, including if your balance is less than $1 or if it has begun delinquency collection proceedings.


Can the bank change my credit card from a MasterCard to a Visa; or from a gas card/department store card to a MasterCard? Yes. While the law does not permit the mailing of unsolicited cards, the bank can substitute one credit card for another credit card, as long as the cardholder requested or applied for and received the original credit card. Substitution is permissible as long as only one account remains active for use. Circumstances when a bank may send a substitute card include when there is a change in the account relationship, such as a change in the bank name, the name of the card, or the features of the card.


My new credit card won't work. What should I do? Most new credit cards are sent in a de-activated state to the mailing address you provided on your application. This is to prevent unauthorized use should the card be stolen in the mail before you receive it.

Instructions on how to activate the card will be enclosed. If you don't see them, call your credit card company.


Does the Truth in Lending Act apply to credit cards issued for business purposes? The Truth in Lending Act only applies to credit extended for business purposes in limited situations.

If a credit card is involved, then the requirements of the regulation that govern the issuance of credit cards and liability for unauthorized use apply. So, credit cards for business purposes can't be issued on an unsolicited basis. Also, if the card is lost or stolen, the cardholder generally cannot be held liable for more than $50 for the unauthorized use of the card.


When I apply for a loan/credit card, can the bank request income information? Yes. A bank that offers you a credit card account is required to consider your ability to pay the minimum payments required. A bank must consider your income or assets and debts in deciding whether you are able to make these payments.

If you are not yet 21 years old, and cannot show an ability to make payments, the bank may also request financial information about a cosigner.

My credit card has been stolen/lost. What should I do? It is critical that you report the loss or theft of your credit cards to the card issuers as quickly as possible. This is true for both your personal and business-purpose credit cards.

Many companies have toll-free numbers and 24-hour service to deal with such emergencies. Credit card issuers often place instructions for reporting lost or stolen cards on your monthly statement. Follow those instructions.

It's a good idea to follow up each phone call with a letter. Include the following information:

* your account number,
* when you noticed your card was missing, and
* the date you first reported the loss.

Be sure to send the letter to the address the credit card issuer designates for reporting lost or stolen cards, which may be same as for billing errors. Do not send it with a payment—or to the address where you send your payments—unless directed to do so.

If you report the loss before your credit cards are used, the card issuer cannot hold you responsible for any unauthorized charges. If there is unauthorized use of your cards before you report them missing, the most you will owe for unauthorized charges is $50 per card.

Also, if the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.

After the loss, review your billing statements carefully. If they show any unauthorized charges, it's best to write a letter to the card issuer describing each unauthorized charge. Again, tell the card issuer the information noted in the three bullets above. Be sure to send the letter to the address provided for billing errors.


My business-purpose credit card has been lost/stolen. Am I responsible for unauthorized charges?  Maybe.

You, the employee, may be responsible for the unauthorized use of your business-purpose credit card by a third party. However, if you report the loss or theft before your business-purpose credit card is used by a third party, the card issuer and/or your employer cannot hold you responsible for any unauthorized charges. If the unauthorized user uses your cards before you report them lost or stolen, the most you will owe for unauthorized charges is $50 per card. 

These limitations on your liability apply only if a third party uses your card. If you use the card in an unauthorized manner, you are responsible for all charges. 


Which States' usury laws apply to credit card accounts? The bank is charging a higher interest rate than my State allows. Is this legal? This may be legal because the maximum interest rate is generally determined by the law of the State where the national bank has its designated headquarters. Under certain circumstances, a national bank may charge rates permitted by the law of a State where it has branches even though its designated headquarters is located in another state. In both situations, the rates can be charged no matter where the borrower resides.

You should review your Account Agreement, which is the contract governing your account, or any subsequent notifications regarding your account. It should provide information on which State's usury law will apply.