American consumers continue to seek credit card debt settlement and relief because they owe more than $945 billion in credit card debt. Last year President Obama signed a debt relief bill into law that is intended to limit the ability of credit card companies to raise interest rates and fees. President Obama said, “With this bill we are putting in place some common sense reforms designed to protect consumers.”
The President signed the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 (H.R. 627). This debt relief bill largely codifies regulations imposed by the Federal Reserve in 2008, but became effective on February 2010. This debt relief bill limits the abilities of credit card finance banks to increase the interest rates of existing customers, charge account maintenance fees and assess penalties will be greatly restricted.
“20% of consumers are currently carrying credit card debt that has been charged interest rates above 20%.” Card issuers will also be banned from enacting rate increases on existing balances due to “any time, any reason” or “universal default” and severely restricted from imposing retroactive rate increases due to late payment. In addition, credit card companies will be required to disclose all terms of their credit contracts online and in language that consumers can see and understand so they can avoid unnecessary costs and manage their finances.
Complete details about debt relief and solutions like credit counseling, credit debt settlement and a secured debt consolidation loan are available online.
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