Your Credit Card is Canceled

Your Credit Card is Canceled

Possibly without notice..

You may be aware that many new laws protecting consumers when dealing with credit cards have recently been passed. Credit card companies, for example, are now required to give customers a 45 day notice before making significant changes including changes in interest rates.

However, canceling cards without warning is allowed. Is this not a significant change?

Credit card companies say that, if they warn consumers that their card is going to be canceled, the user could run up the card balance and never pay it leaving the issuer on the hook.

It is required that you get notice of the cancellation, eventually, just not necessarily before it happens. You must be given notice within 30 days, which could create some very embarrassing moments at the cash register.

None of us should be dependent upon credit cards, certainly not now more than ever. Pay down your balances because, more big news, interest rates are going to continue to go up on credit cards next year and, if you have large balances, you may never get them paid off.

Pay down and pay off your cards. A good 2010 resolution may be to use them less and less.

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  1. Thanks, Adelia, for that interesting information!

  2. The modern credit card was the successor of a variety of merchant credit schemes. It was first used in the 1940s, in the United States, specifically to sell fuel to a growing number of automobile owners.

    In 1938 several companies started to accept each other’s cards. Western Union had begun issuing charge cards to its frequent customers in 1921. Some charge cards were printed on paper card stock, but were easily counterfeited.

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