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Credit Card Reform Act
| Questioner: | Virginia |
|---|---|
| Category: | Creditors and Bankruptcy |
| Private: | No |
| Subject: | Credit Card Act 2010 |
| Question: | Hi! Generally I pay my credit card in full but this month I can not. My Credit Card company told me that since I do pay in full that this month as long as I pay more than the minimum that the following month if I pay my outstanding balance plus all new purchases I would NOT be charged any interest. The customer service person said due to the new "Act" I can basically pay in full every other month and avoid finance charges all together. Is this correct? I tried to look up data but am unable to locate this particular stipulation in the new law. Can you confirm this and possibly lead me to a site that I can print out this information specifically. I appreciate it! |
| Answer: | PROHIBITION ON DOUBLE-CYCLE BILLING AND PENALTIES FOR ON-TIME PAYMENTS.—Except as provided in paragraph (2), a creditor may not impose any finance charge on a credit card account under an open end consumer credit plan as a result of the loss of any time period provided by the creditor within which the obligor may repay any portion of the credit extended without incurring a finance charge, with respect to— ‘‘(A) any balances for days in billing cycles that precede the most recent billing cycle; or ‘‘(B) any balances or portions thereof in the current billing cycle that were repaid within such time period. ‘‘(2) EXCEPTIONS.—Paragraph (1) does not apply to— ‘‘(A) any adjustment to a finance charge as a result of the resolution of a dispute; or |