Credit Card Protection Laws
- Laws protect all consumers who apply for credit from being denied a credit card due to discrimination. Credit card companies cannot deny a consumer credit on the grounds of race, gender, disability or marital status. The credit score of a consumer will be the criterion for approving credit, as well as employment and address verification.
- If a consumer's credit card is stolen, the consumer has protection against the charges that are made on the stolen credit card. Most credit card companies limit the amount of liability on the card holder. This means if someone charges for example $500 on a credit card illegally, the consumer will only be responsible for a certain amount, if fraud is proven. The amount the consumer has to pay will depend on the credit card company.
- The creditor must state truthfully any fees, finance charges or minimum payment percentages it requires before the consumer is issued the credit limit. This allows consumers to agree to terms before they are legally bound by the credit contract. Some credit card lenders give a low annual percentage rate at the beginning of the contract, but it increases after the promotion. As long as the lender states this somewhere in writing, and the consumer signs the agreement, raising the APR rate is legal.
- When a consumer reaches legal retirement age, this should not affect the consumer's credit card status. A creditor cannot shut off the consumer's credit because she has reached the age of 62. As long as the consumer is still making ontime payments and abiding by the agreements of the credit card company, age is not a factor and the consumer can keep her credit card.
- If a consumer does not make his credit card payment, and the debt is turned over to collections, criminal charges may not be filed against the consumer. The credit card company can not harass a consumer at his job for payment, if the consumer notifies the creditor that personal calls to the job are not prohibited by the employer. However, the creditor may take the consumer to small claims or civil court and sue for the debt to be paid, plus any fees or court cost.
