The new Credit Card Accountability, Responsibility, and Disclosure Act — also known as the Credit CARD Act — goes into effect today, eliminating many of the industry’s worst practices haunting consumers. One of the most useful provisions of the new law requires issuers to disclose to consumers how long it will take to pay off the debt if they only pay the minimum monthly payments. In her column Sunday, the Washington Post’s Michelle Singletary – and past NCL Trumpeter Award recipient – has identified for readers the new loopholes in the law that card issuers will no doubt take advantage of in order to balance the pro-consumer changes going into effect with their own interests. Which is their bottom line, she writes. Not yours.
Beginning Monday, some of the more outrageous practices of credit card issuers will be outlawed. But just like a bully on a playground who doesn't punch when the teacher is watching, lenders will find ways to continue pummeling consumers.Read Singletary’s full article here and start thinking about how these changes will affect your personal finances.