New laws don’t prevent companies from creating debt for consumers
While there have been a number of positive changes for consumers that came about as a result of President Barack Obama signing the Credit Card Accountability, Responsibility and Disclosure Act into law last year, some companies are finding ways to circumvent the restrictions the law has put on them and add more credit card debt.
According to a report in the Dallas Morning News, many credit card issuers have fallen in line with the law’s requirements – like those that demand they give consumers 45 days’ notice of any changes made to the terms of the card agreement and prohibit fees for going over their credit limit. However, some lenders have increased penalty rates and fees, as well as boosting basic APRs and adding a surcharge for cash advances.
Many consumers trying to shed some of their credit card debt may want to consider paying above the minimum required for their monthly bill, so that they are cutting into their principal and not just continually paying off interest.