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Credit Card Applications » News » Other » New Credit Card Act Invited Cardholders to Pay Quickly

New Credit Card Act Invited Cardholders to Pay Quickly

July 26, 2010
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The new credit card legislation invited more American cardholders to pay more than their minimum amount due, says a recent survey. A report from the National Foundation of Credit Counselors (NFCC) pointed out that there is an apparent increase in the number of cardholders who are paying more than the required minimum due. The survey indicated that 25 percent of the 2,000 cardholders who were surveyed have paid in excess of their minimum amount due since the last three months of their payment transactions. Furthermore, the survey showed that while 55 percent of the respondents have paid just the exact amount of their minimum balance due, there is a remaining 12 percent who have paid their credit card balance in full by the end of the month.

On February 22, 2010, a new legislation on credit card implementation went into effect with several provisions that are favorable to the card users. NFCC cited some of the provisions of the new Credit Card Act which aimed at helping the public in debt management. As the revised Act dictates, card companies must now print credit card counseling agencies' information together with the statement of account. In addition, banks are now directed to provide a dialogue of information to their card users regarding the consequences of delaying their payments. Credit card companies are also required to discuss with their clients how long it will take for them to pay their balances in full if they rely on their minimum amount dues. The NFCC's role is to find out whether this new provisions have been effective or not in collecting payments. According to the report, the said provisions proved to be valuable with the increase of card users paying their balances the soonest time possible.

As the fear of recession mounted the financial industry setting, card users turned to credit card counseling to help them deal with weak debt management. However, NFCC pointed out that today's use of credit card counseling is to advise cardholders on how to pay their balances in a wiser and quicker way.

Cardholders are also expected to save more money with the revised Act. Prior to it, an average card holder is reported to pay an additional $100 with respect to his balance and an amount of $164 is being saved. But with the new Card Act, a total of $224 would be saved from the same amount since most credit card companies have already increased their interest rates. On the other hand, most of credit card companies are not a bit pleased with some of the new provisions. Since they have anticipated an increase in the interest rate income way before the law was enacted, lenders were pushed to raise interest rates.

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  • Larry
    With the Virgin / Barclaycard signature offer, there seems to be some consumer deception or maybe even outright fraud goin on.   I decided to jump on this offer..  read all the info on it..  was approved for their platinum card, paid the fee, then was only awarded 10,000 points instead of the advertised 20,000.   When i inquired about the less than advertised bonus points, Barclaycard claims only Signiture Visa cardmembers get the 20,000..  as a platinum cardholder, you don't qualify for that level of bonus, so you get 10k instead.   Well, in their current ongoing promotions, it states plain as day that....    Applicants approved for the Visa Signature or Platinum Card with $49 annual fee will receive 20,000 Bonus Points awarded to your Virgin America Rewards Account at the close of the first billing statement in which you make your first purchase or balance transfer (that is not returned or rescinded) and have paid the Annual Fee on the account (and such fee is not rescinded). They don't mention anything about a separate program for platinum cardholders..  However, trying to get someone to resolve this issue with either Virgin or Barclaycard seems to be rather impossible.. Seems to me they're simply drawing people in with the fraudulent offer, then simply saying, oh, we're sorry you don't qualify..  but thanks for signing up for our garbage credit card with insane fees..   
  • CreditLandCom
    Thank you for sharing your experience with us. We have reviewed this offer and you are correct, nowhere it is mentioned that 20,000 Bonus can become a 10,000 Bonus all of a sudden... We will mention this in our review of this card so others can make an informed decision. Another way to get Virgin miles is to get an American Express charge card: The Business Gold Rewards Card® now offers 50,000 Miles, though you do have to spend $5,000 in the first three months of card membership to get it. It also has $0 introductory annual fee for the first year, then $175. http://www.credit-land.com/details/the-business-gold-rewards-card-from-american-express-open.php Premier Rewards Gold Card now offers 25,000 Miles, though you do have to spend $2,000 during your first three months of Card membership. It also has annual fee of $0 for the first year, then $175. http://www.credit-land.com/details/american-express-premier-rewards-gold-card.php While we do not know If any of these offers make sense to you, we are at least sure that you will get advertised bonus in full if you decide to get them... Conversion rates for Virgin America are: 100 Elevate Points = 200 Membership Rewards® Points All the best.
  • Deborah Ellsworth
     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
  • Deborah Ellsworth
    I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself ThankYou. D Ellsworth
  • Miss Edna
    there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
  • Robin Parks
    I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
  • CreditLandCom
    The Chase bank cards are not currently available at Credit-Land.com, but you can consider applying for the Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back. The cards has similar terms and cash back program.
  • Becky
    This is Becky Now what do I do just waqit for acard to come to me?
  • CreditLandCom
    Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
  • SavingStar
    Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
  • CreditLandCom
    Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
  • Eric
  • John Stifler
    I think almost all people that familiar with internet, will hardly fall to these scams, but for now, I think people that use computer but don't familiar with internet things, and they has a phone line at their home, they should be warned more than internet users. I think senior people usually got scammed by these kind of "tech support" scams. Found so many reports about them since years ago at complain board sites like http://callercenter.com. We as younger, and know more about this stuff, should help and share information to they who needed it, especially older people.
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