New Law On Credit Cards... eh?

simpsons88

I heard there is a new law coming in for credit cards at the end of march. I have no idea how this is going to affect me, from reading around we will have to pay off an additional amount so my credit card debt always goes down.

But i can't find jack about it, or if its in place.... please help :mad:

Tixy

The new rules relate to new credit card agreements. Some lenders are changing the T&C on their existing cards to fit the new rules, If this is the case they will write to you about it - most commonly its MBNA card holders who will find their monthly minimum repayments increase.

There are details at the bottom of this article under January's credit card changes - http://www.moneysavingexpert.com/news/cards/2011/02/the-credit-card-and-loan-shake-up-what-it-means-for-you

simpsons88

awsome, i'll give that a read. I thought it was like an additional amount but if the credit card folk are going to be making the changes at their end it keep its more simple i suppose.

thanks for the really quick reply. :beer:

Tixy

Assuming you always pay the minumum payment requested you'll stay within your T&C. Should you credit card company put up your APR (with notice) and still be working on the old style method of calculating minimum repayments it is possible that your minimum payment would not always cover all the interest and so your balance could increase each month.

Eg as a rough guide if your credit card terms are that they collect 2% of your balance each month and your APR is 30% then minimum repayments won't cover your interest so the debt would not decrease. But that would be clear on your statements and you wouldn't be in breach of the T&Cs unless you breached your credit limit.

simpsons88

If my balance wasn't going down would the credit card company be breaking the law, or is that law not introduced yet.

i read this, however im probly reading into it to much

w--.quotezone.co.uk/news/Credit-card-holders-face-changes-in-2011--.htm

Tixy

No.

If the card was a new one, covered by the new rules and the minimum payment they requested each month didn't mean that your balance was going down (assuming no additional spending on the card) then they would be contravening the new lending code.