Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Credit card companies argue the legal bounds of their notification

Credit card companies argue the legal bounds of their notification

By
Add to Favorites:
Credit card companies argue the legal bounds of their notification

In light of credit card industry authorities responding to complaints by cardholders about slow communication on additional fees, and interest rate increases charged to their accounts, different credit card companies have argued the legal bounds of their mandated notification in their defense.


Credit card issuers are quick to respond to mounting pressures, by saying that legally, they are only bound to notify cardholders about changes once they have fully decided to raise an existing fee, or introduce an additional fee. For this, they say they are not obliged to make information public without first fully receiving final approval of the changes for application.


Even more so, the companies argue that they are legally obliged to notify the cardholders about the changes in fees only – whether it will be an additional fee or increase in an existing one. They say that such mandate made it clear so as not to entertain interpretations at the onset, that interest rate changes are not in any way to be included in information to be reported public. The communication that the credit card company makes in the form of a notice is only about fee changes and not interest rate changes, they add.


Furthermore, the credit card companies said what is needed by the cardholder is a more structured and transparent financial management. The companies say that towards this end, there are already existing credit card industry services like counseling, which are even free of charge in their own respective companies.


They say that credit cardholders can demand for these services from their own card issuer’s offices, in order for them to feel the extent of their entitlements as credit card account owners.


The companies argue that should any client find difficulty in responsibly monitoring his or her account, and assuming that efforts by the company is in itself futile, the cardholders can turn to third parties, (such as a personal financial manager) for assistance.


Finally, the credit card companies say in the same way they are legally bound to notify the credit cardholders, the latter also have the legal duty to read through their monthly delivered credit card account papers, visit their banks or even log-in to their accounts to be aware of such changes.

Add to Favorites:

Related News:

Frugal Fashionistas Rejoice: Century 21 and Alliance Data Launch New Credit Card

By Elizabeth Nelson, Posted: September 26, 2016

New York City-based bargain department store Century 21 is partnering with Alliance Data to launch a new credit card program. A favorite of fashionable bargain-hunters, Century 21 operates 10 stores across the greater New York City area ... Continue reading
Talking About Money Equals Happiness

By Dar Dowling, Posted: September 23, 2016

Love and money are the two biggies in life and relationships, and now, according to a new study by TD Bank, couples who talk about money have a higher happiness factor than those that don't. Continue reading
Credit Card Limits Up, Up and Away

By Dar Dowling, Posted: September 22, 2016

Credit card limits had an upswing during the first six months of this year, according to a new study by Experian, with credit card limits in both the subprime and deep subprime credit range equaling $6.4 billion – the largest amount in the ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit