Great Lakes Wire

Attorney General Dana Nessel has reissued a Protections for Credit Cardholders alert as Financial Literacy Month progresses, aiming to educate consumers on their rights under the Credit Card Accountability Responsibility and Disclosure Act of 2009. Nessel emphasized the importance of understanding these protections, stating, “Most of us use credit cards in our everyday lives and it is important to know what protections we have when we choose this payment method.”

The Consumer Financial Protection Bureau reported that in the first five years after the CARD Act came into effect, consumers saved over $16 billion in credit card fees. Nessel highlighted some key provisions of the act, including regulations on credit interest rate increases and payments, billing, and statements. She explained that card companies must give cardholders a 45-day notice before implementing a rate increase and are prohibited from increasing rates on existing balances for the first year after the account opening.

Regarding payments, billing, and statements, Nessel detailed that statements must be sent at least 21 days before the payment due date, excess payments should be applied to high-rate balances first, and double-cycle billing is prohibited. She also noted that credit card statements must display interest and fees paid during the year and provide a warning about the cost of making only the minimum payment.

Nessel underscored the significance of the CARD Act in empowering consumers to make informed financial decisions, stating that the legislation ensures transparency and fairness in credit card practices. She encouraged consumers to utilize the protections offered by the act to navigate the credit card landscape with confidence and knowledge.

For general consumer inquiries or to file a complaint, individuals can contact the Attorney General's Consumer Protection Team at the provided contact details.