The CARD Act, which became law last year, was designed to protect the average consumer by limiting the fees and interest rates card issuers could charge while improving term disclosure. The final phase of the CARD act goes into effect this August, but credit card issuers are already geared up to get around the provisions and continue charging increasing credit card fees and high interest to consumers.
As Arizona’s premier bankruptcy relief firm, we here at The Zolman Law, are dedicated to revealing tricks the credit card companies play so that you can avoid the financial difficulties that lead to bankruptcy.
Finding ways to increase your interest rate
Under the CARD act, if you make your payments on time, your rate on existing purchases is safe. But for new purchases, the card issuer can still legally raise your interest rate in several different ways:
- For fixed rate cards, the issuer can raise your rate to as high as 29.99% as long as they give you 45 days notice.
- Fixed rate cards can also be converted to a variable rate, as long as they give you the required 45 days notice.
- For variable rate cards, as usual your interest rate will still go up if the benchmark rate goes up, AND the card issuer can raise the interest rate that they add to the benchmark as long as they give you that standard 45 days notice.
So keep your eye out for those 45 day notice letters from your card issuer, and be ready to close the account or negotiate a lower rate if they try to raise it.
At The Zolman Law, we believe that your life shouldn’t be defined by debt. We have helped hundreds of people just like you find the relief they deserve from harassing bill collectors, paycheck garnishment, foreclosures proceedings, and – most importantly – the constant worry about money and what to do about your debts.
We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona file for bankruptcy or work through tough tax problems every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing debt. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.