LifeSpan, a nonprofit agency that offers credit counseling services in Butler and Warren counties, is encouraging consumers to take advantage of the act’s opportunities.
“As much as the CARD Act serves to protect consumers, they need to remember that it is their responsibility to become familiar with the changes and take action where required,” said Cheryl Burns, director of Family Life Services for LifeSpan.
The agency, which assisted 11,000 residents with issues such as credit card debt last year, outlined the following as top provisions to note when the CARD Act takes effect Feb. 22:
Review monthly statements: Issuers must disclose how long it will take to pay off balances if only the minimum payment is made each month in what Burns calls the "reality check."
Read fine print: Companies must now give 45 days notice before increasing interest rates or changing fees. Burns said this gives consumers the chance to decide whether to keep or cancel cards.
Know credit limits: Consumers must now tell their credit card company if they want to allow for purchases more than their credit limit. If a person does not opt-in to over-the-limit transactions and the credit card company allows one to go through, it cannot charge an over-the-limit fee, according to the act.
Talk to your kids: Credit cards can no longer be issued to individuals younger than 21 unless there is an adult co-signer or the person can show proof of income for payment ability.
“These changes will definitely help empower consumers to take control of their financial future, and it is our hope that they realize the opportunity that is before them,” Burns said.
For more information on the CARD Act, residents can contact LifeSpan at (513) 868-3210 or visit www.lifespanohio.org.
Contact this reporter at (513) 705-2843 or jheffner@coxohio.com
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