Consumers Feel Protected with new Credit Card Laws

A Reform that was much awaited since quite a long time has now came into existence when President Obama signed into a new law regarding credit cards. The reform was well supported by the house as well as the senate. Trust I am very happy with this decision since it has given a relief breathe to all the consumers. The best part is the legislation passed even when the credit card industry people were against such a decision.

President Obama declaring new credit card reforms

The decision came into act when President Obama came to know that the credit card industry people are taking advantages of the consumers and violating the rights. The legislation was brought up in between because so many people started falling into the trap of credit card debt.

But in my opinion the worst part is that the legislation will make the rules effective not before 2010 which is quite far away from now.

Let me quickly discuss the ways in which this new reform would help the consumers :

1.) Nobody will be allowed to keep the credit cards until he/she is 18

2.) The rate will be increased if in case you are 60 days late and will restore the original rate after 6 months of minimum required payments.

3.) By order, all the credit card companies need to post rules on the internet.

4.) In case of any interest rate hikes, the credit card companies are need to inform the consumers in advance 45 days.

5.) It forces them to apply for payments for the highest interest rate first.

6.) No credit card companies will be allowed to increase the rates, no matter you are late on payments to any lenders.

I am really impressed with these new rules, but only one thing with which I am not satisfied is the effective date which has been fixed in Feb, 2010. Avoid paying any kind of penalties if you don't have credit card debt. Now there is no need to wait for the government to help you. You can easily help yourself. 

I just noticed that our President is left-handed. I wonder how many left-handed presidents we had? Let me know how many of you are satisfied with Obama's New Reforms.