Answers About Credit Cards

Select from the following questions about credit cards.


Is there a new law for protection of consumers?

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.

March 2010

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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.

March 2010

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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.

March 2010

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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.

March 2010

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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.

March 2010

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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.

March 2010

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