California Attorney General Says Watch Out for These Credit Card Traps

Many credit card issuers have sent solicitations in the mail which advertise in large bold print favorable credit terms and seemingly low interest rates. These solicitations are not always fairly presented, and they may contain hidden terms. You should always read the small print and the terms and conditions before you agree to accept or activate a credit card. Be mindful of the following:

Credit Card Accountability, Responsibility, and Disclosure Act

Connecticut Senator Chris Dodd, the Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today hailed Senate passage of his legislation to put an end to the abusive, misleading, and deceptive practices employed by credit card companies.  Dodd’s Credit Card Accountability, Responsibility, and Disclosure Act was approved by a vote of 90 to 5, and will now be sent to the House of Representatives for consideration.

FTC Offers Pay-Off Information to Consumers with Non-Bank Credit Cards

Carrying a credit card balance can be expensive for consumers, especially for those who make only minimum monthly payments. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires that consumers be provided with toll-free telephone numbers to call for an estimate of how long it will take to pay off their credit card balance, if they make minimum payments.

Hot Tips on How You Can Initiate a Credit Freeze

Here’s some great information supplied by the Federal Trade Commission on credit freezes. If you have to place one on your account at the credit bureaus, it important to know that credit freeze laws vary by state along with different fee schedules by bureau.

Many states have laws that let consumers “freeze” their credit – in other words, letting a consumer restrict access to his or her credit report.

Majoring in Debt

I came across an interesting article published by Newsweek Magazine titled, “Majoring in Debt”. It highlights the ways students are targeted by credit card companies.

Debit Cards: Beware of Your Liability Limits

There seems to be quite a bit of confusion as to what your liability limits are on debit cards when I speak to people. Most of my friends immediately say $50, but they’re thinking about federal limits on lost or stolen credit cards.  Debit cards are as the proverbial saying goes, “a horse of a different color”.  Here’s the scoop.

If you report a lost or stolen debit card before it is used, you are not responsible for any unauthorized withdrawals. Your liability is $0.

If you report the loss within 2 business days of discovering it missing, your liability limit is $50. Your liability goes up to $500 if you report it after 2 but before 60 days.