Credit Card Relief Act - How Are The Debtors Benefiting From The Act

It is better to have permanent income than to be self employed. This employment often gives rise to debt and many other financial worries. It is widely accepted that two things are certain in life, one is death and the other is debt. But then man is an epitome of desires and wants and the urge to fulfill the needs and necessity along with luxury cannot be suppressed easily. This urge was tried to suppress by the PLASTIC MONEY.

Now with the existence of plastic money one forgets the limit to shop according to his earning power and again falls in the trap of debt. The government is trying to deal with this situation with the launching of Credit Card Relief Act. It tries to mend the ways with which the credit card organizations deal with the customers. According to this law the credit card company is compelled to have fair rules and regulations and it also makes the company not to change the norms and conditions every other day. This act was initiated by the US Government to deal with the financial situations.

What actually this act does is that it makes the credit card companies to provide with a notice period of at least 45 odd days in case they want to make any sort of changes to the existing interest rates, also named as bill of rights it the consumer is given the right to cancel their pact of credit card if there is a increase in the rate of interest. Three billing cycles are provided to the debtor to decline any new rules about the rate of interest. With this act these credit card company would be under scrutiny of government with the credit card contracts being online. The consumer gets lucky as the company contacts the customer with the credit statements 21 before the payment date. Before this act the tenure was of 14 days. It also made the companies to have the same due date whenever it comes to the payment

This act made the customers to beware of the bill of the plastic money before hand so that he can arrange it to avoid any embarrassment. This initiative in which these credit card companies come under the government scrutiny made these companies to be less dictating and thus not free enough to rise the interest rate very frequently.