Beware These Credit CARD Act Loopholes

Protections offered by the Credit CARD Act of 2009, which demanded more transparency and established tighter rules for credit card companies, have left some loopholes that expose users to potential exploitation. Credit card-offering banks, which rarely miss an opportunities to use credit to manipulate customers, are taking advantage of the law’s shortcomings.

According to, banks that give you 45-day notices on interest rate increases are allowed to increase your rate within 14 days of issuing the notification and can charge you the extra interest after the 45-day period has passed.

Another landmine to watch out for is a retroactive rate increase. If you’re more than 60 days late with a payment, a penalty rate can be retroactively applied to the entire balance you had 14 days after the notification about the penalty rate is mailed out.

What’s the worst interest credit card rate trap you’ve encountered?

Two Credit CARD Act Loopholes You Need to Know About Right Now []
(Thanks, Natalia!)

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