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The new credit card law requires that certain information be added to credit statements. A payment summary example:

* New balance $1,000.

* Minimum payment $35.

* Payment due date: 8/10/08. (Bills must be received 21 days before due.)

* Months before bill is paid off if only minimum payments are made: 49

* Interest amount if only minimum payments are made: $827.75.

Other provisions include:

Paying by phone: No fee can be charged for phone payments.

Over-limit fees: They can’t be charged unless the customer has agreed to allow them.

Minors: For an under-21 consumer, the signature of a parent or other who will take responsibility for the debt, or give proof that the under-21 can pay. Interest rate increases: There will be no retroactive interest-rate increases on existing balances unless payments are 60 days overdue. After that, a customer could get the old rate back by paying on time for six months.

To offset losses, card companies are expected to decrease rewards programs, raise some interest rates and charge an annual fee. The law takes effect in February of 2010.

Maria Smith-Alvira

http://acommunityonline.com