Lexington Law® highlights a big win for consumers when it comes to maintaining healthy credit.
June 3, 2009 | Salt Lake City, UT | (PR Newswire) A new set of rules have been signed into law which will restrict some of the more predatory practices of credit card issuers starting mid-2010. Under these rules, credit card issuers will no longer be able to raise interest on existing credit card balances without justification. Cardholders will need to be 60 days behind on a payment before issuers can increase rates on existing balances, and even then, credit card issuers will be required to restore previous rates if a cardholder pays the minimum payment on time for six months.
These laws also prohibit issuing credit cards to those younger than 21 without proven means to repay the debt or a guardian cosigner, and will require that credit card issuers provide 45 days’ notice and an explanation before increasing interest rates on new credit.
As the nation’s largest provider of credit repair and correction services, Lexington Law has seen first-hand the severe damage that predatory lending practices can cause in the lives of consumers.
“Practices which allow creditors to raise interest rates at will and without justification are devastating for the millions of American consumers who’s budgets are already stretched trying to meet the demands of modern life in America.” Says John C. Heath, Directing Attorney for Lexington Law.
As a firm that has helped Americans recover from credit-related issues for over 18 years, Lexington Law offers interesting insight when it comes to our nation’s “credit crisis.” They believe if there’s any good to come from our current economic challenges, it’s that many flaws making our credit system unfair for consumers are being brought to attention and are beginning to see regulatory action.
“Our firm has represented thousands of clients who have been victimized by an unfair credit system. We know that in order to recover from credit challenges, you first need to get to stable ground. We believe this new rule is a step in the right direction helping consumers regain financial stability, but the credit system still has a long way to go before it can be considered a level playing field for consumers.”
About Lexington Law
Lexington Law is a consumer advocacy law firm with 21 years of experience helping over 1/2 million Americans work to improve their credit. The firm empowers credit success through effective services which leverage consumer rights to legally resolve issues with credit bureaus as well as creditors, assuring that clients’ credit reports are a fair and accurate representation of their true creditworthiness. For details about Lexington Law’s services, attorneys, or statistics visit: www.lexingtonlaw.com.