Legal Question in Credit and Debt Law in California
credit card reform of 2009
In H.R. 627 that Pres. Obama signed on May 22, 2009, I read that my credit card company has to give me advance notice of cancellation. So, I'm still unclear how Amex can cancel my card today even though they are just now mailing my letter of cancelation today. I found out that my Amex was canceled as I was trying to use it at the grocery store today.
Excerpt from H.R. 627 page 2 Title I - Consumer Protection:
��(2) ADVANCE NOTICE OF OTHER SIGNIFICANT CHANGES
REQUIRED.�In the case of any credit card account under an
open end consumer credit plan, a creditor shall provide a written
notice of any significant change, as determined by rule
of the Board, in the terms of the cardholder agreement between the creditor and the
obligor, not later than 45 days prior to the effective date of
the change.
��(3) NOTICE OF RIGHT TO CANCEL.�Each notice required
by paragraph (2) shall be made in a clear and conspicuous
manner, and shall contain a brief statement of the right of
the obligor to cancel the account pursuant to rules established
by the Board before the effective date of the subject rate
increase or other change.
2 Answers from Attorneys
Re: credit card reform of 2009
As I understand it, the legislation you cited doesn't go into effect for one year. Again, go back and Read The Friendly Contract. You may yet be able to take them to small claims court for humiliating you in the checkout line.
Re: credit card reform of 2009
I posted a response to this in your prior question, but wanted to post it here as well. The law Obama signed on May 22, 2009 does not become effective for nine months - nine long months during which credit card companies are going to "clear the deck," so to speak, of any credit cards that they feel are of even the slightest risk. The passage of HR 627 may have actually done more to contribute to the cancellation of your card than help you! Credit card companies and consumer lenders absolutely run Congress - look at recent changes to the bankruptcy code, and the defeat of the judicial loan modification bill - banks are clearly in charge, and consumers are getting the short end of the stick. You may wish to drop your local Congress person a note thanking them for passing a bill that was meant to protect you, only to give the credit card companies nine months in which they could abuse the heck out of people!
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