Financial analysts have recently shared information to help consumers understand and benefit from the Credit Reform Act. Clarifying the legal and illegal stipulations of the Credit Reform Act will just be the right thing to do when we want consumers to learn from their past mistakes.
Financial analyst Anne Lighter states that the reform act has a lot of pro-consumer provisions. The first is the legality of a cardholder`s entitlement, to the option of bowing out of his or her credit card account. As per Ms.Lighter, this can be done once the account holder finds new or additional fees imposed upon their existing credit. This she emphasizes is unfair, unreasonable, and can be burdensome to financial management.
This, is subjective among individuals however, Lighter believes that in the best interest of the credit card companies, they would prefer not to have account owners closing their accounts and paying off on their debts altogether. With this provision, the cardholders are made to close their accounts. A choice they make by themselves, and still are required to pay balance immediately.
The cardholder is expected to immediately inform his or her credit card company of their opposition to the additional fees or charges. The credit card issuer will then cancel the account and of course, no more transaction can be made.
With the assumption that there is an existing balance in the account to be closed, the cardholders will be governed by the old rules in relation to how they must pay the standing balance. Lighter suggests that this is a move of transparency while still enforcing obligations.
Among the new changes to the Credit Reform Act is the mandate for companies or issuers to move out of college booths when marketing themselves to students, alumni, organizations, fraternities, and sororities across colleges and universities. This mandate, as per Lighter, is a pre-emptive move for the financially unstable or vulnerable market of those aged 21 and below. This however does not preclude, however, entitling the same market to credit card accounts. The only difference now, Lighter concludes, is just the fact that there are stricter rules for qualification for those who are aged 21 and under.