Consumers advised to read correspondence to prevent credit card debt
Now that the Dodd-Frank bill has passed new regulations on credit card issuers, companies can no longer hike interest rates and assess hidden fees. However, the San Fransisco Chronicle reports that there is still one loophole that exists in the system: correspondence.
If an issuer writes and mails out changes to terms and conditions, they can assume card holders have read them. Afterward, they are permitted to roll out new adjustments, often catching members by surprise. The Chronicle says that one of the most important steps card holders can take to preventing debt is reading these letters.
Issuers are required to send notices on changes 45 days before they are scheduled to occur. For this reason, consumers should always expect to receive correspondence in the mail and read over all changes.
For cardholders who pay their bills electronically, it can be easy to forget to read these notices. Members are advised to hold onto all letters that come in the mail from their credit card companies to avoid missing out on any important information.
By staying informed, consumers can prevent long-term credit history damage and debt while enjoying the advantages of credit.