|
Credit Card Act
Recent legislation was enacted regarding credit card accounts. President Obama signed the Credit Card Accountability, Responsibility, and Disclosure Act, or the Credit Card Act, into law. This act changes some existing Truth in Lending guidelines to help make sure that the terms on every credit card are fair and clear. Many of the new rules go into effect on February 22, 2010. To view and print the full Card Act, click here. To access a Credit Card Repayment Calculator, click here.
Summary of the New Requirements Effective February 22, 2010
Ability to Repay. For new accounts and credit limit increases, the applicant must provide proof of their ability to repay what they borrow before they can be approved for a credit card.
- New applicants under the age of 21 are required to have a co-signer or show proof of income when applying for a credit card.
- If you are under age 21 and have a card with a cosigner and want an increase in the credit limit, your cosigner must agree in writing to the increase.
Payment Due Dates for credit card statements. Your credit card bill must be due on the same day each month. All PTFCU credit cards will now have a payment due date on the fourth (4th) calendar day of each month.
Monthly Payments. When a card holder pays more than their minimum payment, the excess amount should be applied to the highest interest rate balance. For example, if you have a balance of $1,000 and $500 is at a rate of 10.00%, while the rest is a promotional balance of $500 at 7.9%, any amount that is paid over the minimum payment due will be applied to the $500 balance at 10.00% (the higher interest rate).
- Double-cycle billing uses the average daily balance for a two-month period, which may result in higher interest charges.
- PTFCU does not use double-cycle billing.
Overlimit Fees Opt-In. PTFCU has eliminated the overlimit fee.
Statement formatting changes. The regulations require a series of new disclosures that will be added to credit card statements. Your credit card statement will now include the following:
o How long it will take to pay off the balance if minimum payments are made
o How much of a payment should be made to pay off the balance in 36 months
o How much you may save by paying more than the minimum
o A toll free number for credit counseling
Interest Rates. The regulations do not allow credit card issuers to raise the interest rate on existing balances or accounts that have been open for less than a year, except when:
- An introductory or promotional rate ends on a set date; promotional rate must last for at least 6 months
- You have a variable rate (PTFCU's Platinum MC has a variable rate)
- You are more than 60 days late in making a payment
- If you are in a workout agreement and you don't make your payments as agreed, your rate can go up
If there is a rate increase, cardholders must receive 45 days advance notice of any material change in terms. The regulation does not affect rate changes due to a change in the index used to calculate the rate for variable rate accounts.
Notice of Change in Terms. You must be notified in writing at least 45 days before a significant change is made to your credit card account and a reason for the change must be provided. You can decline these types of changes and close your account by contacting PTFCU.
Posting of Credit Card Agreements Online. This document must be posted on-line at our website. It is currently posted on the MasterCard® page of the PTFCU website.
Marketing on College Campuses. Credit card companies will no longer be able to give college students free giveaways as part of their campus marketing. At PTFCU, we do not market credit cards on college campuses.
|
Why is a PTFCU MasterCard® still a great product?
|
It stands out from among the rest!
- No Annual Fee
- No Cash Advance Fee
- No Overlimit Fee
- Regular Rate Cards – competitive rates
- Variable Rate Card – Platinum MasterCard®
- Credit Limits ranging from $500 through $20,000
- No Universal Default
- Early Fraud Detection
- Zero liability for lost or stolen cards*
*Does not apply to ATM Cash Disbursements.
|
Traveling with your Visa debit card or MasterCard credit card?
Please notify PTFCU before you travel out of the state or country. This information will ensure your debit and credit card purchases are not blocked by our fraud monitoring systems. Transactions that signal a significant change in spending patterns may trigger a fraud alert and block activity on your account. PTFCU has blocked card transactions in some countries. Please call our Member Service Center for further information at 866-773-9835 and press "0". Thank you for letting us know about your travel plans.
Tips to protect your credit card
* Know where your card is at all times.
* Use the card at merchants you know and trust.
* Never give your card number over the telephone to someone calling you and asking for it. If the call is legitimate, they will already know the number and won't have to ask for it.
* If you doubt the caller, hang up and call the card issuer directly to determine if the call is valid.
* Never give anyone your PIN (personal identification number). You are responsible for it and it is as good as your signature.
* Keep your receipts and match them to the monthly billing statement.
* If you lose your card or there are unauthorized charges on it, contact the card issuer immediately.
Been Universally Defaulted?
Have you been UNIVERSALLY DEFAULTED by your credit card company? Did they hike up your credit card annual percentage rate even though your payments were made on time? Well, you need to get off the high interest rate merry-go-round and transfer your balance to a new Pacific Transportation Federal Credit Union (PTFCU) MasterCard® or Platinum MasterCard®. At PTFCU your new MasterCard® features:
-
No Annual Fee
-
No Cash Advance Fee
-
Low interest rate
AND, best of all, NO UNIVERSAL DEFAULT Terms. You've tried the rest, now try the best! Apply at any PTFCU branch or on-line.
PTFCU is an equal opportunity lender. Credit card accounts subject to credit approval. Your rate will be based on your credit qualifications.
|
