Financial Cookie Jar

Yesterday new restrictions were placed on credit cards companies to help current and potential borrowers to be protected from unforeseen interest rate increases, to become more aware of their accounts, and to be able to get the help they need. There were several changes to the statements, such as a debt help phone number to call.

These companies will also be required to notify borrowers of any change to their interest rate 45 days before the change will take place. There are new restrictions regarding over-limit fees and offering credit cards to people under the age of 21.

These changes occurred through the Credit CARD (Credit Card Accountability, Responsibility, and Disclosure) Act signed in 2009. There are many mixed opinions on whether this act will be beneficial or detrimental overall in the long run.

For the time being, these changes will save millions of dollars for the general population in fees, fluctuating interest rates, and other charges. As borrowers can now feel assured that they will know how much they will need to pay and when they will be able to take better control of their accounts and their debt.

On the other hand, the banks are going to lose access to the millions of dollars that the general population will save. Many people expect interest rates to rise in response to the Credit CARD act. These new interest rates will affect all credit card holders and not only those who fail to pay on time.

To read more about the credit card reform visit: http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/card-act-what-to-know.aspxref=nofollow