Thanks to the Credit Card Act of 2009, cardholders are getting hit with fewer penalty fees and surprise interest rate hikes. However, according to a recent news story, a sequel to the Credit Card Accountability, Responsibility and Disclosure Act of 2009 could be in the works as regulators sort through a fresh batch of complaints. Regulators at the Consumer Financial Protection Bureau collected the comments earlier this year about the post-CARD Act environment. The CFPB plans to issue a study in coming months that will look at the law’s impact on the availability of credit, and at how card issuers’ practices are affecting consumers.
Several groups pointed at deferred interest cards as the most dangerous trap lying in wait for unwary borrowers. Deferred interest cards allow people to purchase appliances, furniture and other expenditures they cannot pay for upfront without accruing the added interest. The delayed interest deals are also becoming popular with some doctors and dentists as a way for their patients to finance expensive medical procedures. These type cards are often the most dangerous traps for unwary borrowers, because these cards come with very complicated contracts. One unwary Denver resident told Consumers Union that she and her spouse wound up paying more than $1,000 in surprise interest on a deferred deal. Having made their first payment in October, the couple figured that the final payment on the one-year deferral would be due the following October — but that was a month late. As a result, they were charged the full year of accrued interest, which took a few more months of payments to erase.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
