Summary of the Stop Unfair Practices in Credit Cards Act
By Stephen Otto, Pennsylvania Bankruptcy Attorney on Oct 3, 2007 in Benefits of Bankruptcy
As you may know if you have been following this blog, Wendell Sherk wrote about the Stop Unfair Practices in Credit Cards Act back in May. I recently stumbled upon a handy summary of the act here, provided by one of the sponsors, Senator Carl Levin of Michigan.
To review, the Act would do the following:
- prohibit finance charges for balances paid on time by the consumer, including the phenomenon known as “two-cycle billing”;
- limit how high interest can rise in the absence of an express agreement;
- no interest rate rate increases on previously financed, existing debt;
- prohibit the charging of interest to finance charges like over limit fees, late fees and card member fees;
- restrictions on over-limit fees;
Additional information about the proposed act may be found at the link provided above.
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