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What is the Credit CARD Act of 2009?

The Credit Card Accountability Responsibility and Disclosure Act of 2009, also known as the Credit CARD Act of 2009, is a federal law that was passed by Congress and signed into law in May 2009. The law is a comprehensive piece of credit card reform designed to foster transparent and fair practices on the part of credit card companies.

Among the parts of the Credit CARD Act of 2009 is the Credit Cardholders' Bill of Rights, which includes multiple provisions that were created to limit the way credit card companies charge their customers. However, it does not include rate caps, price controls or fee settings. The following are the main provisions in the Credit Cardholders' Bill of Rights:

-- Providing consumers sufficient time to send in their bill payments.

-- Preventing retroactive rate increases by providing 45 days' notice of all rate increases.

-- Making it easier to pay off debt. New payments need to be applied to the highest interest rate debts on a credit card.

-- Outlawing fee harvester cards by restricting fees relating to low-balance cards intended for credit cardholders who have bad credit.

-- Doing away with excessive marketing practices that target young people. In order to receive a credit card, people under the age of 21 need to show that they possess an independent income.

Credit card debt can add up fast and endanger the credit of Kentucky residents. In some cases, debt can get so bad that a Kentucky resident has no feasible way of paying off his or her debts. In these situations, debt holders may want to consider looking into bankruptcy proceedings to resolve their outstanding debts.

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