Laws to Reduce Credit Card Debt

Major Advantages of Debt Settlement Like Paying Less Than 50% The current recession has made paying down debt a primary goal for most people. There are many laws that are presently helping protect borrowers and some laws that will be implemented in 2010. Here is a brief summary of some laws that help borrowers reduce current and future debt as they pay down their balance. The Fair Credit Billing Act protects borrowers from being required to pay erroneous fees on credit card bills. It also protects against charges due to a card being stolen or used by unauthorized people.  Another law that helps borrowers, The Electronic Fund Transfer Act, helps protect borrowers and make payment more convenient through electronic payments rather than snail mail. One problem in the past that made paying down debt difficult was the lack of time borrowers had between being notified of required action and when changes in rates were implemented. The new Credit Card Accountability Responsibility and Disclosure Act requires credit card companies to mail bills 21 days in advance to provide ample time for borrowers to pay the bill without late fees being added. This act also requires credit card companies to inform borrowers of interest rate increases 45 days before the change is implemented.  The law will be providing many changes in February 2010. Some of those changes that will help borrowers reduce their debt includes: when a interest rate hike is implemented it can not be charged to an existing balance. Another legal change will require credit card companies to place payments made by the borrower on the amount of his balance that has the highest interest rate. Double cycle billing will be no longer allowed.