The video above is from last year where Suze Orman explained the new credit card laws. She called them “too little, too late” and encouraged people to write their congressmen to speed up the date in which it would take effect.
As it turns out, a lot of people actually did, and the new laws go into effect 5 months ahead of schedule- today!
Unlike Suze, I had hope for these new laws when I first heard about them passing. The average credit card company is expected to cut their profit in half because of this and I’m all for lessening corporate greed. Besides the 4 laws explained in the video some other important laws that go into effect are:
- – Anyone under 21 must have a co-signer to activate a credit card or at least prove financial stability.
– Interest rates can’t rise within the first year.
– Credit card companies must notify you 3 weeks in advance before a payment is due.
Finally, the emerging generation has hope for financial security. The average college student graduates with $10,000 in credit card debt today, but this will obviously have a positive effect on that number. This is why I voted for Obama.
